Economic theory allows us to predict the behavior of a specific person or firm
a. True
b. False
B
You might also like to view...
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Fiscal policy
A) uses the tool of interest rates to stimulate private savings. B) uses the tools of taxation and spending in an effort to address inflation and unemployment. C) uses the tool of the exchange rate to discourage imports. D) uses the tool of business regulation to increase economic efficiency.
In case of an increase in product prices:
A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the quantity effect dominates the price effect, total revenue is rising. D) when the quantity effect dominates the price effect, total revenue is falling.
Legal immigration to the United States peaked just before World War I, but today is almost zero
Indicate whether the statement is true or false