The recognition lag is generally of equal duration for both fiscal policy and monetary policy.
Answer the following statement true (T) or false (F)
True
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A benefit of deductibles and health savings accounts is that they
A) reduce the moral hazard problem associated with third-party payers. B) increase the quality of health care. C) reduce the use of expensive techniques for hopeless cases. D) reduce the incomes of physicians.
In the short run, perfectly competitive firms
a. always earn an economic profit b. never earn an economic profit c. always invest more in order to earn more d. never suffer an economic loss e. can earn an economic profit
The school that argues that through tax reductions, spending cuts, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the
a. rational expectations school b. neo-Keynesian school c. school of supply-side economics d. new Classical school e. classical school
If cars and petrol are consumed in a specific proportion, the indifference curve for cars and petrol is likely to be _____
a. a straight line b. downward sloping c. L- shaped d. U-shaped