The Keynesian theory is consistent with the business cycle fact that inflation is
A) procyclical and leading.
B) procyclical and lagging.
C) countercyclical and leading.
D) countercyclical and lagging.
B
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A rise in the price level causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase
In economics, the term "surplus" means an excess quantity supplied
a. True b. False Indicate whether the statement is true or false
Economist A believes that the case for government is a strong one, but she doesn't always say, when it comes to negative externalities, that government can turn an inefficient market outcome into an efficient outcome. Which statement is economist A most likely to make?
A) If the tax placed on the activity that generates the negative externality is too large, we are not likely too move from inefficiency to efficiency. B) If the subsidy placed on the activity that generates the negative externality is too small, we are not likely to move from inefficiency to efficiency. C) If there is a free rider problem, then government cannot solve the problem of negative externalities. D) a and b E) none of the above
The newest evidence on Head Start suggests that ________ participants are more likely to earn higher incomes as young adults than equally-situated non-participants.
A. white B. Asian C. African-American D. all