Positive externalities ______
a. are not important economically
b. should be reduced through subsidiziation
c. are undersupplied by unfettered markets
d. can be ignored
c
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Keynes argued that an economy could be in equilibrium when the economy was
A) operating at maximum potential capacity. B) operating with some unutilized productive capacity. C) trying to operate at some output level beyond its potential capacity. D) operating either at full productive capacity or at less than full capacity.
Corporations often raise funds for business activities by the sale of shares of existing common stock.
Answer the following statement true (T) or false (F)
The most important factor in determining a nation's standard of living in the long run is the productivity of its resources
a. True b. False Indicate whether the statement is true or false