Tools a government might use to pursue industrial policy might be all of the following except:
A. incentives for foreign direct investment.
B. offer tax breaks to firms.
C. investment in research to create more growth.
D. directly manipulate markets in order to control prices.
D. directly manipulate markets in order to control prices.
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In reality, AD rarely ________; however, the economy performs as though it does when it ________
A) decreases; fluctuates with potential GDP B) increases; decreases at a pace much slower than potential GDP C) stagnates; increases at a pace much faster than potential GDP D) decreases; increases at a pace much slower than potential GDP E) decreases; increases at a pace much faster than potential GDP
A monopoly creates a deadweight loss because the monopoly produces less than the efficient quantity
Indicate whether the statement is true or false
A vertical aggregate supply curve favors which of the following policies?
A. Discretionary policy B. Fiscal policy C. The Fed's eclecticism D. Fixed rules
If technology is a complement to labor, then advances in technology will ________ the number of workers hired.
A. increase B. not affect C. decrease D. act as a substitute for