Figure 9.6In Figure 9.6 if price is P2, then the industry will:
A. expand.
B. contract.
C. stay the same size.
D. cease to exist.
Answer: C
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A jobless recovery occurs when
A) no jobs are created in an economy after a recession ends. B) employment continues to fall at the beginning of a recovery. C) only low-quality jobs are created in a recovery. D) most of the new jobs created in a recovery are overseas.
Monetary policy will have a large income effect provided the
A) IS curve is flat. B) LM curve is steep. C) IS curve is steep. D) LM curve is flat.
Public choice analysis indicates
a. most income transfers will be directed toward the poor. b. rent-seeking activities will improve the efficiency of resource allocation and promote economic growth. c. rent seeking will be less attractive if the nation's legal (or constitutional) structure makes it difficult to use the political process to take the property or income of others. d. politicians will consistently oppose programs favored by rent seekers if those programs reduce the welfare of society.
When creating money, banks are acting as ______.
a. depositors b. borrowers c. suppliers d. intermediaries