Government corruption
a. impedes the coordinating power of markets and discourages investment.
b. impedes the coordinating power of markets but does not discourage investment.
c. does not impede the coordinating power of markets, but does discourage investment.
d. can neither impede the coordinating power of markets nor discourage investment.
a
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Which of the following statements about the central bank is TRUE?
A) Only the central bank may hold foreign reserves and intervene officially in exchange markets. B) Central banks have little power to alter macroeconomic conditions. C) Today, central banks' reserves consist largely of gold. D) The Federal Reserve holds only a small level of official reserve assets other than gold. E) Central banks never inject money into the economy.
The graph above shows a monopolistic competitor
A. in the short run taking a loss.
B. in the short run making a profit.
C. in the long run breaking even.
D. in the long run taking a loss.
In Polynomia, real GDP increased by 8% and the population increased by 3% in 2018.. In 2018, Polynomia experienced
A. an economic decline. B. economic growth and an increase in living standards. C. no economic growth, but an increase in living standards. D. economic growth, but not an increase in living standards.
Answer the following statements true (T) or false (F)
1. A decrease in government spending and a cut in taxes would be a pair of fiscal policies that reinforce each other. 2. The flexibility of the price level tends to dampen the multiplier effect of fiscal policy. 3. Built-in stability is exemplified by the fact that with a progressive tax system, net tax revenues decrease when GDP decreases. 4. If taxation becomes more progressive, the built-in stability in the economy will decrease. 5. Transfer payments that increase as GDP falls are a type of automatic stabilizer in the economy.