Without government involvement, wages and interest rates are set by _______________.
A. price floors
B. supply and demand
C. price ceilings
D. None of these choices are correct
B. supply and demand
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The creation of a new agricultural policy that includes target pricing occurred during which decade?
a. 1930s b. 1940s c. 1970s d. 1980s e. 1950s
A monopoly:
A. faces competition from other firms producing close substitutes. B. is a price taker. C. sets a low price by controlling the level of output. D. restricts its output.
The idea that the business cycle is recurrent means that
A) declines in economic activity tend to be followed by further declines, and growth in economic activity tends to be followed by more growth. B) the standard pattern of contraction—trough—expansion—peak occurs again and again in industrial economies. C) many economic variables to move together in a predictable way over the business cycle. D) peaks and troughs of the business cycle occur at regular intervals.
A decrease in government spending is one of the options that can be used to pursue a contractionary fiscal policy.
Answer the following statement true (T) or false (F)