During a severe and persistent recession, Keynesians would most likely propose

A. a tight money policy.
B. annually balanced federal budgets.
C. macroeconomic stabilization.
D. tax increases.


Answer: C

Economics

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The perpetual problem in economics is:

a. our inability to work together effectively. b. our inability to satisfy everyone's wants with the available resources. c. a recognition of continual class differences. d. our inability to utilize resources efficiently. e. likely to be solved in resource-rich countries.

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During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP...

What will be an ideal response?

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Refer to the above table. What is the absolute price elasticity of demand if a price falls from $7.50 to $7?

A. 0.724 B. 1.38 C. 10 D. 0.1

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The American Medical Association, a physicians' union, is a good example of a(n):

A. Demand-enhancing union B. Craft union C. Inclusive union D. Industrial union

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