Which of the following statements generates the greatest amount of disagreement among economists?
a. Increases in the money supply shift aggregate demand to the right.
b. In the long run, increases in the money supply increase prices, but not output.
c. Recessions are associated with decreases in consumption, investment, and employment.
d. Government should use fiscal policy to try to stabilize the economy.
d
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Which of the following is NOT considered a consumption good?
A) Nike swimming trunks B) marriage counseling services C) a UPS truck D) a Subway sandwich E) a U.S. government bond
Since few Americans would ever be willing to pay more for a sandwich than for a pair of jeans,
A) for most Americans clothing is more important than food. B) for most Americans clothing is more valuable than food. C) for most Americans clothing has more monetary value than food. D) most Americans derive their values from the culture rather than biological necessities. E) most Americans have little difficulty obtaining enough to eat.
Ball found that the disinflation of the early 1980s in the United States had a sacrifice ratio of about
A) 0. B) 1. C) 2. D) 3.
Using the fiscal year 2014 estimates, the largest component of state and local revenue is the
A) individual income tax. B) corporate income tax. C) revenue from the federal government. D) sales, excise, and gross receipts taxes.