Monetary policy is one of the two main macroeconomic tools governments use to control the aggregate economy. The other is:
A. trade policy.
B. foreign policy.
C. immigration policy.
D. fiscal policy.
Answer: D
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If goods A and B are complements, and if the price of good B rises, how will this affect the market equilibrium for good A?
a. Price will rise and quantity will fall. b. Price will fall and quantity will rise. c. Price and quantity will both rise. d. Price and quantity will both fall.
Since most firms use a stable markup, prices will remain stable over long periods of time
a. True b. False
Indicate what might be done to restrain the tendency of the democratic process to generate budget deficits?
What is a labor union?
a. a group of workers that forms a collective to assume ownership of a company b. a governing board that oversees hiring and promotions at large manufacturers c. a partnership between the owners of the means of production and the workers d. a workers’ organization formed to negotiate fair pay and safer working conditions