Which is regarded as an automatic stabilizer in the economy?
A. Exchange rates
B. Interest rates
C. The inflation rate
D. The progressive income tax
Answer: D
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The substitution effect can be measured holding ________ constant
A) income B) utility C) the price of one good D) the price of all goods
"The only thing that results from expansionary demand-side fiscal policy is that the price level will rise." The economist who said this most likely believes that
A) there is likely to be a lot of crowding out if government spending rises. B) the AS curve is vertical. C) there is unlikely to be much crowding out if government spending rises. D) investment is interest inelastic. E) b and c
Which of the following criteria is not a barrier to entry:
A financial investment in starting a clinical program Regulatory requirements to get the state to allow a health care organization to open a particular program Establishing market awareness for a new program All of these are potential barriers to entry
The aggregate demand curve will shift to the left ________ the initial decrease in government purchases
A) by less than B) by more than C) by the same amount as D) sometimes by more than and other times by less than