Economists who favor activist monetary policy argue that
A) the economy does not always equilibrate quickly enough at the Natural Real GDP or full-employment output and therefore needs help.
B) activist monetary policy is effective at smoothing out the business cycle.
C) activist monetary policy is flexible and flexibility is a desirable quality in monetary policy.
D) a and b
E) a, b and c
E
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A larger labor force will allow the economy to produce more total output
Indicate whether the statement is true or false
An economic expansion tends to cause the federal budget deficit to ________ because tax revenues ________ and government spending on transfer payments ________
A) increase; rise; falls B) decrease; rise; falls C) decrease; fall; rises D) increase; fall; rises
For a monopolist, the price effect:
A. is the increase in revenues from selling a greater quantity at a lower price. B. is always outweighed by the quantity effect. C. is the decrease in revenues from selling a greater quantity at a lower price. D. always outweighs the quantity effect.
A horizontal merger is a merger between firms
A) earning roughly the same amount of profit. B) producing roughly the same products. C) regularly doing business of any sort with each other. D) standing in a supplier-purchaser relationship. E) that were previously independent.