Those who favor active policy making argue that all of the following exist EXCEPT
A) perfectly flexible wages and prices.
B) inflation and unemployment are stable in the short run and predictable in the long run.
C) pure competition is not typical.
D) aggregate demand shocks can influence real GDP and unemployment.
A
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Nowadays, most observers believe that monetary policy
a. is less important than fiscal policy. b. is more important than fiscal policy. c. and fiscal policy are equally important. d. and fiscal policy are both unimportant.
Airlines charge business travelers more than leisure travelers because there is a more:
A. elastic demand for business travel. B. inelastic demand for business travel. C. elastic supply of business travel. D. inelastic supply of business travel.
Recall the Application about genetic testing and adverse selection to answer the following question(s).According to the Application, why is genetic testing causing adverse selection?
A. People who find out through genetic testing that they are more likely to get certain genetic illnesses are more likely to get insurance. B. People who find out through genetic testing that they are more likely to get certain genetic illnesses are less likely to get insurance. C. People who find out through genetic testing that they are more likely to get certain genetic illnesses are more likely to get hired by employers. D. People who find out through genetic testing that they are more likely to get certain genetic illnesses are less likely to get insured by insurance companies.
Total planned expenditures for domestically produced goods and services consist of
A. consumer spending, business spending, government spending, and import spending. B. consumer spending, business spending, and net export spending only C. government spending, business spending, and import spending only. D. consumer spending, business spending, government spending, and net export spending.