Many economists believe that stabilization policy should be limited in scope until
a. Keynesians and monetarists agree on policy.
b. inflation is brought under control.
c. the economy is operating near capacity.
d. forecasting becomes more reliable.
d
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An increase in the price level
A) shifts the AD curve to the right. B) shifts the AD curve to the left. C) causes an upward movement along the existing AD curve. D) causes a downward movement along the existing AD curve. E) a and c
If price of a product falls
A. the budget line rotates to the right. B. the budget line rotates to the left. C. the marginal utility of the product also falls. D. the indifference curve will shift to the left.
Subsidies for silver, the Bland-Allison Act of 1878, and the Silver Purchase Acts of 1890 and 1933 all provide examples of government programs
(a) based on careful analysis of benefits relative to costs. (b) designed to redistribute income from the rich to the poor. (c) that reflect the political attractiveness of special-interest issues. (d) that promote the general welfare.
A technological improvement can cause the production possibilities curve to shift outward because
A. maximum feasible outputs of both goods increase. B. it increases costs and contributes to lower production rates. C. it causes increases in unemployment. D. production will fall, but jobs will be saved.