Most economists think that the economy's self-correcting mechanism is
a. relatively rapid.
b. rapid in the short run and sluggish in the long run.
c. sluggish in the short run and rapid in the long run.
d. relatively sluggish.
d
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Which of the following uses of tax revenues collected by the government leads to increased capital deepening?
A) Medicare payments B) Social Security payments C) increased foreign aid D) building roads
The figure above shows the market for bank reserves in Futureland
If the Bank of Futureland lowers the target federal funds rate by 1 percentage point, the central bank will conduct an open market ________ of government securities of ________ to ________ the supply of reserves. A) purchase; $25 billion; decrease B) sale; $25 billion; increase C) sale; $75 billion; decrease D) purchase; $75 billion; increase E) purchase; $25 billion; increase
If x increases whenever y decreases, then x and y are
A) not related. B) positively related. C) directly related. D) negatively related. E) related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.
Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico in 2005. This drove up the prices of natural gas, gasoline, and heating oil. This is an example of a
A) supply shock. B) demand shock. C) negative externality. D) depression.