The effect of automatic stabilizers on the business cycle is to:
a. make upswings larger and downswings smaller.
b. make upswings smaller and downswings larger.
c. make both upswings and downswings smaller.
d. eliminate fiscal drag
e. make both upswings and downswings larger.
c
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Firms whose central business is providing individual account shares of a group of stocks, bonds, or both are known as:
A. insurance companies. B. thrifts. C. commercial banks. D. mutual funds companies.
The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.40 and is 2.25 other days of the year. If Rosie's Roses faces a constant marginal cost of $2 per rose, what is the profit-maximizing off-peak load price to charge on days not on the week of Valentine's Day?
A) $7.00 B) $5.80 C) $2.50 D) $3.60
Which is the broadest price index reported in the United States?
A) the CPI-U B) the GDP deflator C) the consumer price index D) the producer price index
One lesson that American policy makers can learn from the health care systems of other counties is
a. people must be willing to accept long waiting lists for expensive services. b. a government-run system ensures equal access across socio-economic groups. c. the importance of having a safety valve. d. the mix between general practitioners and specialists is of little importance. e. private insurance cannot complement government insurance.