capitalism
What will be an ideal response?
-tends to work better
-Productive resources are owned privately
-Goods and resources are allocated through market prices
-is similar to natural selection. It uses the idea of market efficiency
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A fish hatchery raises brook trout and rainbow trout. An increase in the market price of brook trout therefore tends to
A) reduce the demand for brook trout. B) increase the hatchery's cost of raising rainbow trout. C) increase the demand for brook trout. D) decrease the hatchery's cost of raising rainbow trout.
A theory of aggregate economic fluctuations called real business cycle theory holds that
A) changes in the real money supply are the only demand shocks that affect the natural rate of output. B) aggregate demand shocks do affect the natural rate of output. C) aggregate supply shocks do affect the natural rate of output. D) changes in net exports are the only demand shocks that affect the natural rate of output.
Given our automatic stabilizers and our tax laws, __________ are virtually inevitable during recessions.
Fill in the blank(s) with the appropriate word(s).
The Lucas supply function incorporates the idea that output depends on the difference between the actual price level and the expected price level.
Answer the following statement true (T) or false (F)