Compared to an economy’s self-correcting mechanism, active contractionary fiscal policy will
A. work more slowly and calmly.
B. work more quickly.
C. have less deflationary effects.
D. have a smaller effect on real GDP.
Answer: B
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If demand is inelastic, the absolute value of the price elasticity coefficient is greater than one
Indicate whether the statement is true or false
A theory can best be defined as
a. an untested assertion of untested fact. b. a collection of assumptions that simplify the real world. c. an opinion of a reliable person who studies a subject or discipline. d. a deliberate simplification of factual relationships that attempts to explain how those relationships work. e. the body of knowledge that has been scientifically verified by the scientific community.
It is possible for a country without a lot of domestic natural resources to have a high standard of living
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.