Classical economists would cite all of the following as reasons why the government cannot smooth out the business cycle except that
A) only productivity shocks can cause real fluctuations in the business cycle.
B) the government has imperfect knowledge of the economy.
C) political constraints on policy actions prevent the government from carrying out effective policies.
D) time lags between the onset of a recession and the implementation of effective countermeasures make anti-recessionary macroeconomic policies impractical.
A
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Which of the following is not a characteristic of perfect competition?
A. Firms and consumers all have perfect information about the good and market. B. Sellers can enter the market easily. C. All goods sold are identical. D. All consumers have identical individual demand curves.
A two-player game has an equilibrium outcome
a. only if both players have dominant strategies b. if neither player has a dominant strategy c. whenever one player has a dominant strategy d. only with tit-for-tat strategy e. only with repeated trials
The system of measurement for expressing macroeconomic data is called
A. national income accounting. B. balance of payment accounting. C. generally accepted accounting principles. D. double entry bookkeeping.
Contractionary policies are government stabilization policies intended to decrease:
A. unemployment. B. planned spending. C. population. D. average labor productivity.