The deep recession of 1973-1975 was mainly caused by
A) flawed technology that caused a drop in TFP.
B) an unexplained drop in business optimism.
C) slower money growth.
D) higher oil prices.
D
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One benefit of automatic stabilizers is that they
a. decrease consumption during a recession below what it would otherwise be b. make GDP more volatile c. cause the cyclical deficit to fall during a recession d. increase consumption during a recession above what it would otherwise be e. increase consumption during an expansion above what it would otherwise be
If polluters are forced to pay for their pollution, they will reduce pollution toward a socially optimal amount
a. True b. False Indicate whether the statement is true or false
Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced?
a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
________ is the yardstick used to compare living standards across nations
a. Investment level b. Output per capita c. Net export d. Interest rate