If the government knew the level of potential income and had sufficient information about the economy it could fine-tune the economy.
Answer the following statement true (T) or false (F)
False
Even if the government had this information, it would still have to formulate and implement the appropriate fiscal policies, and this takes time and may be difficult in a politically-charged environment.
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The asset beta in the Capital Asset Pricing Model is a moderate number that measures
A) how sensitive the asset's return is to market movements. B) how sensitive the asset's discount rate is to changes in inflation. C) the risk premium on the stock market. D) the risk premium on an individual stock.
A decrease in household income for a good that is considered normal would
A. cause a movement along the demand curve to a (higher price, lower quantity) point. B. move its demand curve to the left. C. cause a movement along the demand curve to a (lower price, higher quantity) point. D. move its demand curve to the right.
(Scenario: Capital) Look at the scenario Capital. In three years' time, what is the level of physical capital per worker in this economy?
What will be an ideal response?
For a monopolist, profit is maximized at the level of output where MR = MC.
Answer the following statement true (T) or false (F)