The major difference between short-term macroeconomic theory and long-run macroeconomic theory is:
a. Short-term theory focuses mainly on demand-oriented factors, and long-run theory focuses mainly on supply-oriented factors.
b. Short-term theory focuses mainly on supply-oriented factors, and long-run theory focuses mainly on demand-oriented factors.
c. Short-term theory focuses mainly on financial markets, and long-run theory focuses mainly on the real goods market and the foreign exchange market.
d. Short-term focuses mainly on the real goods market and foreign exchange market, and long-run theory focuses mainly on the financial markets.
e. Short-term theory focuses mainly on the role government has in an economy, and long-run theory focuses mainly on the role financial and real markets have on the real goods market.
.A
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Evidence suggests that as the amount of market power possessed by the firms in an industry increases, the amount of X-inefficiency will decrease
Indicate whether the statement is true or false
If you were a Keynesian economist, you would
a. believe that saving is always detrimental to our economic health b. believe that increased saving always leads to lower national income0 c. believe that increased investment is undesirable d. see economic trouble ahead if saving increases unattended by a complementary increase in intended investment e. actively try to achieve the paradox of thrift for our national economy
Economists oppose limiting economic growth possibilities because such limits would inevitably involve
a. some expansion of private sector production. b. an increase in government spending. c. some form of mandatory controls on economic activity. d. mandated balanced federal budgets.
In the above table, saving is positive when real disposable income is greater than
A. $100. B. $300. C. $500. D. zero.