Keynesians and non-Keynesians would largely agree on which one of the following statements?
a. Expansionary fiscal policy will tend to substantially increase current real output.
b. Proper timing of discretionary fiscal policy is difficult to achieve.
c. The use of discretionary fiscal policy is an important stabilization tool.
d. Market forces will automatically direct the economy toward full employment.
B
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In an economy which produces two goods X and Y, using two inputs L and K, efficient input use occurs when
A) MRTSLKX = MRSLKY B) MRTXY = MRSXY C) MRSX/PX = MRSY/PY D) MRTSLKX = MRTSLKY
Discuss three possible solutions for reducing traffic congestion on freeways. Be sure to explain what effect each would have on the supply and/or demand for freeway space
Suppose there are only three consumers in the market for a good and each consumer will buy only one unit of the good. Their individual economic values for the good are $6, $8, and $12, respectively. If the market price for the good is $10, what is the total consumer surplus for the three buyers?
A. $6 B. $12 C. $4 D. $2 E. $8
In order to accumulate the resources that they needed to make interest payments, Latin American countries were forced to used macroeconomic policies that
A) devalued their currencies and caused deep recessions. B) revalued their currencies and caused increased inflation. C) devalued their currencies and caused increased inflation. D) revalued their currencies and caused deep recessions.