The major limitation of both the Keynesian approach and the monetarist approach is that both
a. focus on the determination of interest rates to the exclusion of price levels.
b. study the determination of real GDP equilibrium without including the price level.
c. are ways of studying the aggregate demand curve, but to learn anything about the price level and output, the aggregate supply curve must be included in the analysis.
d. concentrate on interest rates without considering changes in consumption or net exports.
c
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Trade is often restricted because the
A) gain per producer is larger than the loss per consumer. B) total gain to all producers is larger than the total loss to all consumers. C) gain per producer is less than the loss per consumer. D) total gain to all producers is smaller than the total loss to all consumers. E) gain per consumer is larger than the loss per producer.
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency hires without verifying typing skills c. a manufacturer requires suppliers to be ISO 900 . certified d. Smokers get the worse life insurance rates as non-smokers
When the Fed lowers the legal reserve requirement, it
a. lowers the cost of borrowing from the Fed, allowing banks to make more loans b. raises the cost of borrowing from the Fed, disallowing banks from making the same quantity of loans c. increases the amount of excess reserves that banks hold, allowing them to make more loans d. increases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans e. decreases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans
Some economists believe that one of the following improvements in the tax code could lead to more technological progress.
A. A tax on nominal rather than real capital gains B. A tax on real rather than nominal capital gains C. A tax on capital rather than labor D. investment A tax on labor rather than capital