How do critics of stabilization policy view the "political business cycle"?
a. They suggest shorter election cycles would improve stabilization.
b. They believe that politicians cause economic instability, due mainly to the election schedule.
c. They believe that the Fed can resist political pressure and stabilize the economy.
d. They believe that politicians do not know enough economics in order to stabilize the economy.
b
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Define "reservation values." If a buyer of a product has a reservation value of $10, the seller of the product has a reservation value of $3, and the equilibrium price of the product is determined at $5,
calculate the consumer surplus and the producer surplus.
________ occurs when individuals conform to the decisions of others
A) Herding B) Anchoring C) Signaling D) Sniping
Which of the following equations describes the government deficit?
A) G + TR + INT - T B) G + TR - INT - T C) G - TR + INT - T D) G - TR - INT - T
National income:
a. is included in gross private domestic investment. b. includes the sum of all payments made to resource owners for the use of their resources. c. includes depreciation. d. is often measured as C + I + G + (X ? M).