Which of the following characterizes the Fed's ability to prevent recessions?
A) The Fed is incapable of changing aggregate demand through its monetary policy tools.
B) The Fed is able to "fine tune" the economy and entirely eliminate recessions.
C) The Fed is able to eliminate the business cycle and achieve absolute price stability.
D) The Fed is able to keep a recession shorter and milder than it would otherwise be.
D
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Which of the following involves taking income from those with higher incomes and providing income to those with lower incomes?
a. Appropriation b. Labor-leisure tradeoff c. Economic stabilization d. Redistribution
Bill gets medical insurance and then exercises less. Lilly has health concerns and so applies for medical insurance. Identify each of these as moral hazard or adverse selection
The opportunity cost of housing =
What will be an ideal response?
Which type of compensation method works by performance bonus?
A. Profit sharing B. Piece rate C. Revenue sharing D. All of the statements associated with this question are correct.