Critics of stabilization policy argue that
a. "animal spirits" must be offset by active monetary policy.
b. active monetary policy is necessary for steady economic growth.
c. the lag problem ends up being a cause of economic fluctuations.
d. active fiscal policy is required for steady economic growth.
c
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Events that shift the Ap demand schedule to the left also cause ________ the IS curve
A) movements downward along B) movements upward along C) parallel rightward shifts of D) parallel leftward shifts of
Mass production during U.S. industrialization involved using which of the following?
(a) Interchangeable parts (b) Division of labor and specialization (c) The assembly line (d) All of the above
In Figure 5.5, what profit would the monopolist earn? 
A. a positive profit B. zero profit, because it would shut down C. a loss less than its total fixed cost D. a loss greater than its total fixed cost
What is the difference between foreign direct investment and foreign portfolio investment?
A) Foreign direct investment involves purchases of foreign stock or bonds by individuals or firms, while foreign portfolio investment involves a firm purchasing or building a facility in a foreign country. B) Individuals engage in foreign portfolio investment, but only firms can engage in foreign direct investment. C) Foreign direct investment can give a low-income country access to funds and technology it would not otherwise have, but foreign portfolio investment does not expand that access. D) Foreign direct investment only takes place when governments make official purchases or foreign investments, while foreign portfolio investment takes place when firms, individuals, or the government purchase foreign investments.