An example of a microeconomic decision is a situation in which
A) the Federal Reserve considers how much to increase the money supply during the coming month in an effort to constrain the rate of inflation.
B) Congress and the president seek to reach a compromise on how much to increase government spending in an effort to influence national expenditures.
C) a firm evaluates how much to reduce the price of its product in an effort to influence sales and boost its profits.
D) the U.S. Treasury contemplates buying foreign currencies in an effort to influence exchange rates with an aim to boosting demand for U.S. goods and services.
C
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Describe one important criticism of Rostow's stages of economic growth theory
What will be an ideal response?
Remember the fish market? On the market day, the supply curve is ____________ but over the long run the supply curve is quite __________
a. income inelastic; elastic b. elastic; inelastic c. inelastic; elastic d. fixed; variable e. variable; fixed
However linked the war-induced cycle theory is to our economic reality, most economists suppose that
a. war conspiracies, seemingly far-fetched, have much validity b. these cycles were random shocks to an economy already in continuous cyclical motion c. most wars since 1815 (Napoleonic period) were initiated principally to jump-start a sagging economy d. wars are necessary to achieve sustained economic prosperity e. there is no link between war and the economy
The use of money and credit controls to change macroeconomic activity is known as:
A. Fiscal policy. B. Monetary policy. C. Supply-side policy. D. Eclectic policy.