Which of the following lags makes stabilization policy more problematic?
A. Expenditure lags
B. Recognition lags
C. Policy lags
D. All of these responses are correct.
Answer: D
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The socially efficient level of output is determined where
a. marginal social cost equals marginal social benefit b. marginal private cost equals marginal social benefit c. average social cost equals average social benefit d. average private cost equals average social benefit e. total social cost equals total social benefit
A decrease in aggregate supply can result in:
a. unemployment. b. demand-pull inflation. c. prosperity. d. cost-push inflation. e. a recession.
If an economy wants to increase its current level of investment, it must
A. sacrifice future consumption. B. print more money. C. offer more stocks and bonds to financial investors. D. sacrifice current consumption.
A major macroeconomic leakage from the circular flow is:
a. Consumption b. Savings c. Saving d. Gross private domestic investment e. Government spending.