In the process described as Schumpeterian economic growth (involving Schumpeter's ideas about growth),
(a) recessions are the object of countercyclical policy designed to minimize the waste
of unemployed labor and other resources.
(b) expansions are considered wasteful because of the tendency for inflation to be
generated near the cyclical peaks.
(c) recessions are considered to be useful cleansing devices for abandoning inefficient
uses of economic resources.
(d) depressions are considered to be necessary to maintain greater equality of wealth
and income over time.
(c)
You might also like to view...
When your textbook says that it is misleading to say that the market economy produces an aggregate GDP-measured "economic pie," the authors have the following claim in mind:
A) Unlike a pie, income in the economy can't be divvied out independent of the exchange process. B) The economy produces more than just pies. C) The "pie" metaphor focuses solely on real GDP and excludes the more important measure of nominal GDP. D) The production of pies create no income opportunities for market participants.
For certain public projects such as building a dam on a river or a bridge to an island, what procedure is a government likely to use to determine what quantity of a public good should be supplied?
A) It hires economists to estimate the market demand for the product. B) It evaluates the costs and benefits of producing the good. C) It takes a vote in Congress. D) It conducts public surveys to determine if consumers want the product.
A tax on sellers:
A. shifts the demand curve left by the amount of the tax. B. shifts the demand curve down by the amount of the tax. C. shifts the supply curve up by the amount of the tax. D. shifts the supply curve left by the amount of the tax.
Marginal analysis involves undertaking an activity
A) until its marginal costs start declining. B) only when its marginal benefits are positive. C) until its marginal benefits equal marginal costs. D) only if its marginal costs are greater than its marginal benefits.