With regard to the business cycle, most modern economists believe that
a. once a recession starts, market forces are incapable of preventing the economy from plunging deeper and deeper into a depression.
b. market economies will experience lengthy periods of recession pretty much regardless of what policy makers do.
c. the economy's self-corrective mechanism will quickly restore full employment regardless of the choices made by policy makers.
d. lower real interest rates and reductions in real resource prices will help direct an economy out of recession.
D
You might also like to view...
The interest rate on a consol equals the
A) price times the coupon payment. B) price divided by the coupon payment. C) coupon payment plus the price. D) coupon payment divided by the price.
When disposable income is zero, consumption is also zero
a. True b. False Indicate whether the statement is true or false
Haiti has a lower literacy rate (the percentage of those over 15 who can read and write) compared to other Latin American and Caribbean countries. Where does this low literacy rate fit into the factors that explain the wealth of nations?
A. It indicates that Haiti is short on human capital. B. It shows that it lacks entrepreneurship. C. It shows a lack of natural resources. D. It indicates that Haiti is short of physical capital.
The longer the time that has elapsed since the price of a good changed, the
A) more elastic the demand for that good. B) steeper the demand curve. C) less elastic the demand for that good. D) smaller the amount of that good bought. E) fewer substitutes available for the good.