The long run result of the government responding to a negative supply side shock with increased spending will be a:
A. faster recovery, but it will cause even greater inflation.
B. slower recovery, if they misjudge their own spending.
C. faster recovery at a lower price level than allowing short-run aggregate supply to adjust on its own.
D. slower recovery, but it will cause inflation to be lower than if they did nothing.
A. faster recovery, but it will cause even greater inflation.
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When calculating GDP, the Bureau of Economic Analysis revises its quarterly data
A) a total of one time. B) many times over the next several years. C) a total of three times. D) a total of two times.
Marxists and leaders of communist economies actually often admire the market mechanism for its
A. efficiency in allocation of resources. B. fairness in distribution of output. C. maximization of net benefits for consumers. D. effectiveness in achieving high rates of growth.
The break-up of slave families was most often due to:
a. the sale of fathers. b. the sale of mothers. c. the sale of children. d. divorce.
Compare and contrast the two normative standards to income distribution discussed in the text: The productivity standard and the egalitarian principle
What will be an ideal response?