Opponents of active stabilization policy
a. generally don't believe, even in theory, that fiscal policy can stabilize the economy.
b. generally agree that fiscal policy has no impact in the long run.
c. believe some effects of monetary policy may be long-lived.
d. think the Fed should simply try to fine tune the economy.
c
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Buyers and sellers in a flea market often determine the terms of exchange through a process of ________
A) collective bargaining B) bilateral bargaining C) sniping D) arbitration
The presence of ________ creates a difference in the value between the market price and the factor cost of a product
A) indirect taxes and consumption B) subsidies and direct taxes C) corporate profits and subsidies D) indirect taxes and subsidies
A theory of saving is necessarily a theory of consumption, because ________
A) by definition, any unit of disposable income that is not a consumption expenditure is a unit of saving B) consumption decisions are made after saving has occurred C) private saving is equal to private investment D) the goal of consumption choices is to achieve the desired level of savings
Assume that a firm's total revenue is less than its total cost for the level of output it is producing. In the short run, this firm should: a. expand output
b. contract output. c. shut down. d. There is not enough information to answer the question.