When attempting price regulation, a government faces what problem(s)?
A) limited information
B) bribes
C) uncooperative firms
D) All of the above.
D
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In the long run, what determines the value of money?
A) real GDP B) money market equilibrium C) the government budget balance D) international trade E) equilibrium in the loanable funds market
Suppose the economy is currently experiencing 6% inflation per year. If the Fed wants to reduce inflation to 2% and the sacrifice ratio is 5, then how much annual output must be sacrificed in the transition?
a. 5% b. 10% c. 15% d. 20%
According to many economists, if wages are _________________, the economy _____________ remove itself from a recessionary gap, and thus ____________ government intervention is needed
A) flexible; can; no B) inflexible; may not; some C) flexible; may not; some D) inflexible; can; no E) a and b
An economy where private individuals guided by the invisible hand make decisions is known as a:
A. socialist economy. B. centrally planned economy. C. barter economy. D. market economy.