Monetarists believe that:
a. the government should follow a fixed rule to change money supply in response tobusiness cycles
b. the government should not use discretionary monetary policy to achieve its goals ofeconomic growth and low inflation.
c. government intervention should be well thought out and should be used only during recessions.
d. government intervention in the economy makes business cycles disappear.
e. government intervention policies have only long-run effects.
b
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Which of the following is true of monopolistic competition?
A) There is only one seller in this market structure. B) The product sold by each seller in this market structure is identical. C) The firms in this market structure earn huge economic profits in the long run. D) There are a large number of sellers each selling a differentiated product.
A bank run involves a large flow of money
a. into bank depositors' accounts. b. into checking and savings accounts. c. out of depositors' accounts. d. out of individuals' cash reserves into money market funds.
Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?
a. Juan Carlos, a full-time student who is not looking for work b. Kevin, who is on temporary layoff c. Andrea, who has retired and is not looking for work d. All of the above are correct.
If an increase in the price of good X leads to an increase in the consumption of good Y, then goods X and Y are called:
A. substitutes. B. inferior goods. C. complements. D. normal goods.