In a capitalist system, the decisions and actions of millions of consumers and firms are highly coordinated by:
A. The state and government
B. Markets and prices
C. A central planning agency
D. An international organization
Answer: B
You might also like to view...
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Refer to Table 11.1. If the marginal propensity to import increases to 0.5 (mpi = 0.5), what is the new equilibrium level of output?
A) 568.00 B) 760.00 C) 946.67 D) 1,266.67
From the classical perspective, an increase in unemployment during a recession represents
A) voluntary unemployment. B) a roughly equal mix of voluntary and involuntary unemployment. C) involuntary unemployment. D) a decrease in the number of discouraged workers in an economy.
A once-and-for-all jump in the price level would initially cause a(n)
a. upward shift in the consumption function. b. upward movement along the consumption function. c. downward shift in the consumption function. d. downward movement along the consumption function.