New classical economists differ from traditional classical economists because new classical economists
A. Believe people's rational expectations will lead them to offset government policy.
B. Focus on budget restraint and the use of monetary policy when the economy overheats.
C. Believe that economic failures are inherent in a capitalist economy.
D. Believe tax cuts and government spending should be used to increase demand and output.
Answer: A
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Tariffs are government policies designed to encourage international trade
a. True b. False
Figure 21-1
In Figure 21-1, a reform in the distribution system that achieves the same distribution with less damage to work incentives is represented by a move from which points?
A. A to B B. C to G C. C to F D. B to C
Determinants of the supply of loanable funds are all except:
A. expectations of future economic conditions. B. rate of return on investment. C. wealth. D. social welfare policies.
Bob, the owner of a local deli in town, needs to purchase something that economists would label as "capital" to help him produce sandwiches. Which of the following is an example of capital?