Monetarism is a school of thought put forth by Milton Friedman. He argued that the economy would most likely
A) be below potential GDP. B) be above potential GDP.
C) be unstable. D) be at potential GDP.
D
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Suppose that research shows that by buying stocks issued by companies whose names begin with the letter G investors can earn above-normal returns in even-numbered years. From the perspective of the efficient markets hypothesis,
A) this is further evidence that the hypothesis is correct. B) this would be considered a pricing anomaly. C) investors must have insider information on these companies. D) purchasers of these stocks must have been noise traders.
Tax deductions were significantly ____ under the Tax Reform Act of 1986
a. increased b. decreased c. expanded d. left unchanged for individual taxpayers
If the quantity demanded of a certain good responds only slightly to a change in the price of the good, then the
a. demand for the good is said to be elastic. b. demand for the good is said to be inelastic. c. law of demand does not apply to the good. d. demand curve for the good shifts only slightly in response to a change in price.
External shocks can
A. Improve the validity of economic forecasts based on leading economic indicators. B. Cause economic forecasts based on leading economic indicators to become inaccurate. C. Be predicted using standard statistical techniques. D. Assist the Fed with the implementation of monetary policy.