An advantage of automatic stabilizers is that this type of fiscal policy is not subject to:
a. imprecise knowledge of full-employment real GDP.
b. special interest groups.
c. lag time problems.
d. All of these are true.
d
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
It is not surprising to see a rather __________ volume of mergers and acquisitions in Japan given its __________-oriented financial system
A) high; banking B) high; markets C) low; banking D) low; markets
In the U.S. balance of payments, exports to Europe are recorded as a
a. a use of funds in the current account. b. negative item in the current account. c. capital inflow item. d. capital outflow item. e. None of the above
Economics is the study of
a. how the human race differs from other species b. how individuals amass personal fortunes in the stock market c. how individuals and nations deal with the problem of scarcity d. role that money plays in the economy e. how goods and services are distributed throughout the world