Rent controls and controls on other prices often aggravate the very problem they are intended to solve
a. True
b. False
Indicate whether the statement is true or false
True
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Have unions been successful at raising wages for their members? What about raising wages for all workers?
What will be an ideal response?
The central government of Vervia believes that the economy is headed toward an economic slowdown, with all the major parameters of economic growth showing signs of slowing down. In such a satiation, the central bank of the economy is likely to: a. start buying government bonds. b. increase the discount rate
c. start selling government bonds. d. increase the reserve requirement.
?
In Exhibit 3-11, in Panel B the movement from point A to point C describes a(n):
A. increase in both demand and supply, where the increase in supply is relatively bigger. B. decrease in both demand and supply, where the decrease in supply is relatively bigger. C. increase in demand and a decrease in supply, where the decrease in supply is relatively bigger. D. decrease in demand and increase in supply, where the increase in supply is relatively bigger.
Which of the following was an argument for using fiscal policy in situations like the Great Recession?
A. Congress can act quickly. B. The size of a recessionary gap may require the use of both fiscal policy and monetary policy. C. Once the federal funds rate is reduced to zero, monetary policy is less effective. D. All of these responses are correct.