Economic principles suggest that we should focus on balancing the budget rather than balancing aggregate supply and aggregate demand
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
The marginal productivity principle says that a profit-maximizing firm should
a. hire capital until its marginal product is zero. b. hire labor until another worker costs more to hire than she can earn for the firm. c. hire the quantities of capital and of labor at which their marginal products are equal. d. hire capital until its marginal product is negative.
A difference in wages between a highly-educated worker and a less-educated worker
a. may be due to a difference in the amounts of human capital between the workers. b. may be a signal that the market is indifferent to a worker's level of human capital. c. is considered unfair by economists. d. is considered unfair by everyone.
Since 1950, the standard of living in the United States has:
A. decreased when measured by both total output and output per person. B. increased when measured by both total output and output per person. C. increased when measured by output per person, but decreased when measured by total output. D. decreased when measured by output per person, but increased when measured by total output.
If the government of a country with a zero trade balance started with a budget deficit and moved to a budget surplus, domestic investment would
a. rise and there would be a trade surplus. b. rise and there would be a trade deficit. c. fall and there would be a trade surplus. d. fall and there would be a trade deficit.