A limitation on fiscal policy is time. Which of the following does not impact the timeliness of fiscal policy?
A. It takes time to recognize that the economy is in trouble.
B. It will take time to develop a policy strategy and for Congress to pass it.
C. All of these impact the timeliness of fiscal policy.
D. It will take time for the policy to be implemented and for the many steps in the multiplier process to unfold.
Answer: C
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The long-run supply curve for a firm in a perfectly competitive industry is:
A) negatively sloped. B) positively sloped. C) vertical. D) horizontal.
If quantity demanded for rice falls by 2% when price increases 8%, we know that the absolute value of the own-price elasticity of rice is:
a. 2.5. b. 0.25 c. 4.0 d. 0.40.
Which of the following assumptions is known as exclusion restrictions?
A. The assumption that an instrumental variable is excluded from a regression model and is correlated with the error term. B. The assumption that an instrumental variable is excluded from a regression model and is correlated with an exogenous explanatory variable. C. The assumption that an exogenous explanatory variable is excluded from a regression model and is uncorrelated with the error term. D. The assumption that an endogenous explanatory variable excluded from a regression model and is uncorrelated with the error term.
The branch of economics that focuses primarily on aggregates is:
A. consumer economics. B. microeconomics. C. macroeconomics. D. scientific economics.