Which school of thought would be considered the most laissez-faire?
A. the mainstream view
B. the monetarist view
C. the self-correction view
D. the real business cycle view
Answer: C
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Expansionary fiscal policy in an open economy has a
A. greater effect than in a closed economy. B. similar effect as in a closed economy. C. smaller effect than in a closed economy. D. greater effect than monetary policy.
If there is an increase in government spending, then, ceteris paribus, the IS curve:
A) will shift to the left. B) will shift to the right. C) will not shift at all. D) will shift to the left if there is a corresponding decrease in taxes.
The economy’s self-correcting mechanism always tends to push the unemployment rate back toward a specific rate of unemployment called the
A. ideal rate of unemployment. B. natural rate of unemployment. C. full rate of unemployment. D. mature rate of unemployment.
What is a monopsony and how does a monopsonistic firm determine the wage rate to pay its employees?
What will be an ideal response?