The effectiveness of automatic stabilizers is limited by the fact that
A. Congress usually acts slowly in legislating changes in tax rates.
B. The stabilizers tend to raise the average price level regardless of the phase of the business cycle.
C. The offset that the stabilizers provide to a change in private spending is less than the change in private spending.
D. Transfer payments and subsidies increase during inflation and decrease during recessions.
C. The offset that the stabilizers provide to a change in private spending is less than the change in private spending.
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According to the Herfindahl-Hirschman Index, which is the more concentrated industry?
A. Industry X with an index of 2,400.
B. Industry Y with an index of 2,738.
C. Both industries have the same indices.
D. There is no way to determine the Herfindahl Indices of these industries with this data.
If individuals are rational, they should choose actions that yield the:
A. smallest economic surplus. B. largest economic surplus. C. smallest total costs. D. largest total benefits.
Explain how the short-run and long-run Phillips curves are related
What will be an ideal response?
If absolute PPP holds, then the real exchange rate must equal 1
Indicate whether the statement is true or false