The macroeconomic models that are most supportive of the role of government policy aimed at smoothing business cycles are
A) real business cycle models.
B) endogenous growth models.
C) Keynesian models.
D) Solow growth models.
C
You might also like to view...
Which of the following federal activities was new under the New Deal? The federal government
(a) subsidized building construction. (b) provided federal finances to build houses. (c) established regulatory agencies intended to influence activities in private markets. (d) engaged in all of the above.
You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w = $40, r = $100, MPL = 20, and MPK = 40 the firm:
A. is profit maximizing but not cost minimizing. B. is cost minimizing. C. should use less L and more K to cost minimize. D. should use more L and less K to cost minimize.
The book cites a result where after of the implementation of the congestion tax in Stockholm, Sweden of $1.50-$3.00, traffic volume was reduced and travel time for cars and buses was cut in half. This is an example of:
A. responding to incentives. B. the role of pricing in allocating resources. C. caveat emptor. D. comparative advantage.
Under the adaptive method of estimating expected sales in the simple acceleration theory, if a firm's actual sales increase,
A) expected sales will increase if j is greater than zero. B) expected sales will remain the same if j equals zero. C) expected sales will equal the previous period's actual sales if j equals one. D) All of the above are correct.