Since the end of World War II, the economy of the United States has been more influenced by stabilization policy. One of the undesirable side effects of this has been that the economy now has a greater tendency to suffer from
a. more severe recessions and depressions.
b. higher levels of unemployment and lower rates of employment growth.
c. lower rates of growth in real and nominal GDP.
d. more persistent periods of inflation.
d
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Refer to the figure above. If the price of a sweater is $3 and the budget constraint of the consumer is B3, his income is:
A) $45. B) $90. C) $135. D) $270.
What is the deadweight loss due to profit-maximizing monopoly pricing under the following conditions: The price charged for goods produced is $10 . The intersection of the marginal revenue and marginal cost curves occurs where output is 100 units and
marginal revenue is $5 . The socially efficient level of production is 110 units. The demand curve is linear and downward sloping, and the marginal cost curve is constant.
Consider the effect of business cycles on bondholders versus stockholders. We expect that business cycles will affect:
A. stockholders more since they are residual claimants. B. bondholders more since the amount they receive depends on profits. C. bondholders and stockholders about the same. D. bondholders more since they do not have any claim to property.
For economists, the word "utility" means:
A. versatility and flexibility. B. rationality. C. pleasure or satisfaction. D. purposefulness.