Advocates of the active approach believe that discretionary government policy can restore economic stability and improve economic performance
a. True
b. False
Indicate whether the statement is true or false
True
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An efficiency wage
A) is higher than the market wage and tends to increase productivity. B) is lower than the market wage and tends to increase productivity. C) is higher than the market wage and tends to decrease productivity. D) is lower than the market wage and tends to decrease productivity.
When is it more expensive for a country to go to war – during a recession or during an economic boom? Explain
What will be an ideal response?
Norma receives an increase in her nominal income. She complains that the current inflation rate of six percent erodes the real purchasing power of her additional nominal income. This is true
a. only if the increase in her nominal income is less than six percent. b. only if the increase in her nominal income is more than six percent. c. since inflation always reduces purchasing power. d. only if her real income increases.
Price elasticity of demand shows how:
a) To compute the slope of the demand curve. b) Price responds to demand changes. c) Quantity demanded responds to price changes. d) Quantity demanded responds to changes in the price of other goods.