Before discovering that the short-run Phillips curve does not show the true long-run situation, policy makers were successful in trying to bring the economy to the zero-inflation, zero-unemployment point on the short-run curve
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following was the fastest-growing financial intermediary of the 1970s?
A) commercial banks B) credit unions C) finance companies D) money market mutual funds
John Maynard Keynes concluded that investment spending is not determined by
A. business confidence. B. government incentives. C. psychological perceptions about the economy. D. economic expectations.
An economic boom that creates an inflationary gap is usually followed later by
A. falling prices. B. a period of stagflation. C. an increase of potential GDP. D. an increase in aggregate supply.
A homeless family is given a government subsidy for an apartment in an affordable housing project. The apartment
A. is subject to the free-rider problem. B. has widespread benefits and concentrated costs. C. is not a public good. D. is not subject to the principle of rival consumption.