Most economists agree that it is possible for fiscal policy to fine-tune the economy.
Answer the following statement true (T) or false (F)
False
Most economists believe that fiscal policy is too slow to be enacted, too politically motivated, and too slow to impact the economy. As a result, it cannot be used to effectively address each and every economic fluctuation.
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The terms of trade between two countries refer to
A. The terms set by the World Trade Organization for trade. B. The rules governing trade between the two countries. C. The amount of good A given up for good B. D. What price the two countries agree upon for their imports and exports.
Assume that the relative prices of capital and labor have not changed. As a firm's expenditures for capital and labor decrease, its isocost line
A. rotates outward on the Y-intercept. B. rotates outward on the X-intercept. C. shifts in parallel to the original isocost line. D. shifts out parallel to the original isocost line.
The amount of capital used per farm worker increased by how much from 1930 to 1980?
A. Double B. Fivefold C. Tenfold D. Fifteen-fold
If the aggregate price level ________, but nominal wages stay fixed, real wages ________
A) falls; fall B) rises; fall C) rises; remain fixed D) falls; remain fixed