Believers in a fixed-rule approach to stabilization policy propose that
A. Congress should balance the high employment budget.
B. the Fed should keep the money supply growth constant.
C. the economy be stabilized by automatic mechanisms.
D. All of these responses are correct.
Answer: D
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The majority of American workers are employed in the manufacturing sector.
Answer the following statement true (T) or false (F)
Robert is a doctor who earns an average hourly wage of $80. His wife is a teacher and earns an average hourly wage of $35. His daughter works in her college library and earns $12 per hour while his son is a lawyer and earns $60 per hour
If one of them must stay back at the house on a working day to look after their ailing pet, who can do it at the lowest opportunity cost? A) His son B) Robert C) His wife D) His daughter Mike and John work as waiters in a restaurant. Mike can efficiently wait on 10 customers per hour while John can efficiently wait on 7 customers per hour. The restaurant also has a bar. If both of them work as bartenders, Mike is able to serve 9 customers per hour while John is able to serve 10 customers per hour.
The duopoly price provides a greater incentive to maintain cartel pricing than does the grim- trigger strategy.
Answer the following statement true (T) or false (F)
Which of the following is correct?
A) TC = TFC + TVC B) TC = TFC - TVC C) TC = TFC TVC D) TC = TFC / TVC