The activist response to the monetarist platform says that
A) private spending may show some stability, but monetary or fiscal policy designed to stabilize it will just make things worse.
B) private spending is stable partly because consumption spending is based on permanent income.
C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GDP.
D) None of the above.
D
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Suppose the price of product X increases. We would expect this price increase to
A. decrease the demands for both complementary good Y and substitute product Z. B. increase the demand for complementary good Y and decrease the demand for substitute product Z. C. increase the demands for both complementary good Y and substitute product Z. D. decrease the demand for complementary good Y and increase the demand for substitute product Z.
What are the two important properties of all models?
What will be an ideal response?
The creation of new property forms (such as privatizing a public beach) is one answer to __________ because it would reduce _________
a. government failure; market failure b. market failure; government failure c. the creation of third parties; public choice d. dealing with externalities; the number of third parties e. the inefficiencies of the market; special interests
Suppose that Alan, Annie, Amanda, Alicia, and Anthony begin with the same MPC. According to Keynes's absolute income hypothesis, who ends up with the highest MPC?
a. Alicia, an attorney who earns $200,000 per year as a corporate tax specialist b. Annie, a college student living on $5,000 of student loans c. Alan, a new college graduate earning $24,000 in his first job d. Amanda, a fifty-year-old CEO earning $133,000 e. Anthony, a twenty-two-year-old rap star earning $3 million