Classical economists argue that
A) the government should have an active role in the economy.
B) government policies will be ineffective and counterproductive.
C) the government should actively intervene in the economy to eliminate business cycles.
D) wages and prices don't adjust quickly, so the economy is slow to return to equilibrium.
B
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Negative income taxes have been a feature of our tax system since President Lyndon Johnson's "war on poverty" in the 1960s
Indicate whether the statement is true or false
If the number of people employed rises by 180,000 and the number of people unemployed falls by 200,000 while the adult population stays the same, then the labor force participation rate rises
a. True b. False Indicate whether the statement is true or false
Japan could shift its production possibilities curve outward (to the right) if
A. it could buy some islands in the Pacific Ocean, thus increasing its available amount of land. B. it could devote more of its output to military goods. C. it could devote more of its output to producing consumer goods. D. all of the choices are true.
Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, which of the following is NOT a strategy that the government can pursue to address the rising cost of federal retirement and health care programs?
A. reform the health care system to encourage more competition to reduce health care expenditures B. increase the age at which retirement benefits begin to be paid C. borrow from the public to finance the programs D. promote government saving and investment to increase real GDP over time