During the 1960s, many Keynesian economists felt that by studying the Phillips curve
A. policy makers could eliminate even frictional unemployment in the economy.
B. policy makers could fine-tune the economy by selecting policies that would produce the exact mix of unemployment and inflation that suited current government objectives.
C. policy makers could dispense with the Federal Reserve's open-market operations.
D. the President and Congress did not need to attempt to balance the budget.
Answer: B
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Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. If the price of a hamburger decreases from $6 to $2, the price elasticity of demand equals ________. Use the midpoint formula.
A. -0.25 B. -0.5 C. -2.0 D. -4.0
As the Federal Trade Commission currently interprets the Herfindahl-Hirschman index (HHI), an industry is considered to be highly concentrated if the HHI value is above
A) 100. B) 1,000. C) 2,500. D) 5,000.
Countercyclical fiscal policy refers to
a. any fiscal policy that cycles between budget surpluses and budget deficits b. the use of taxes and government spending to keep the economy close to potential GDP in the short run c. any fiscal policy that is employed during a business cycle d. the use of open market purchases of bonds to keep the economy close to potential GDP in the short run e. the use of changes in tax rates to keep the economy at potential output in the long run
An example of a real-life rule that might constrain people's behavior is:
A. having 24 hours in a day. B. the earth's limited supply of oil. C. minimum wage legislation. D. All of these are examples of real-life rules.