One lesson to be drawn from our discussion of price ceilings and price floors is that
a. government intervention in the economy should be routine and extensive
b. the government can easily solve most economic problems
c. price ceilings work better than price floors
d. in most cases, prices should be set by the interaction of demand and supply
e. price controls work best if left in place over long periods
d. in most cases, prices should be set by the interaction of demand and supply
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Technological changes that increase the productivity of skilled workers relative to that of unskilled workers are referred to as:
A) skill-biased technological changes. B) labor-saving technological changes. C) unskilled-biased technological changes. D) labor-complementary technological changes.
Cash in a commercial bank's vault is not part of the money supply
a. True b. False
If the average-total-cost curve is falling, then the marginal-cost curve must also be falling
a. True b. False Indicate whether the statement is true or false
Which of the following will cause an increase in aggregate demand?
A. Restrictive fiscal policy. B. An increase in the reserve requirement. C. Expansionary monetary policy. D. The sale of bonds by the Fed.