Supply-side economic policies are best viewed as
a. a short-run countercyclical tool.
b. a long-run strategy to promote economic growth.
c. a strategy for the control of long-run inflation.
d. a stabilization tool to smooth the ups and downs of the business cycle.
B
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Financial innovations occur because of financial institutions search for
A) profits. B) fame. C) stability. D) recognition.
In the above figure, which of the following is a possible explanation for the reduction in the equilibrium value of the European euro from P2 to P1?
A) an increase in demand for French automobiles B) the European central bank's decision to buy euros on the world market C) a decrease in the price of California wines, assuming that French wines and California wines are substitutes D) an increase in the price of California wines, assuming that French wines and California wine are substitutes
Consider the economy of Burgerland, which only produces hamburgers. If the velocity of money is 25, the price of a hamburger is $5, and the quantity of money in the economy is $500, how many hamburgers did Burgerland produce?
a. 2,000 b. 2,500 c. 2,750 d. 3,000
Exhibit 5-9 Supply and Demand Curves for Good X
?
As shown in Exhibit 5-9, the price elasticity of demand for good X between points E and B is:
A. 3/7 = 0.43. B. 7/3 = 2.33. C. 1/2 = 0.50. D. 1.