According to Paul Krugman, during the past decade Japan's macroeconomic policy should have incorporated which of the following?
A) stimulatory monetary policy
B) stimulatory fiscal policy
C) monetization of the debt by the central bank
D) All of the above
D
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Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will decrease the effective price received by sellers of picture frames by
a. less than $0.50. b. $0.50. c. between $0.50 and $1. d. $1.
More than half of the labor force in developing countries is devoted to agriculture, and about 3/4 of output in these countries comes from agriculture
Indicate whether the statement is true or false
Economic policy in the real world reflects:
A. special interest desires only. B. a balancing of cost/benefit analysis and special interest desires. C. cost/benefit analysis only. D. a complete lack of understanding of the principles of economics.
Assuming there are no externalities, if a firm produces an output level where the benefits to consumers ________ the cost to suppliers to produce it, then price is ________ marginal cost.
A. are less than; greater than B. exceed; less than C. equal; less than D. exceed; greater than