The drop in unemployment from over 11 percent in 1939 to roughly 1 percent in 1944:
a. has been attributed by Keynesians as a validation of larger deficits as a solution to unemployment.
b. has been attributed by Monetarists as a validation that a large increase in the money supply would cure the depression.
c. has been acknowledged as a success in Keynesian policies, with the caveat that inflation was only averted through price controls.
d. All of the above are correct.
d. All of the above are correct.
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Monopolistically competitive firms face downward sloping residual demand curves because these firms
A) have relatively few rivals (compared to competition). B) sell differentiated products. C) A and/or B. D) None of the above.
In Coppage v. Kansas (1912), the Supreme Court held that
a. all employers were required to offer employees the option of joining a union. b. an employer's right to require that employees sign "yellow-dog contracts" was protected by the 14th Amendment. c. "yellow-dog" contracts were illegal for any business engaged in interstate commerce. d. using federal troops to break strikes was a legitimate use of police power. e. All of the above.
If New York City expects that an increase in bus fares will raise mass transit revenues, it must think that the demand for bus travel is:
a. elastic. b. unit elastic. c. inelastic. d. perfectly inelastic. e. 10.
One-shot inflation can originate
A) only on the demand side of the economy. B) only on the supply side of the economy. C) on the demand side or the supply side of the economy. D) on neither the demand side nor the supply side of the economy.