Those who prefer a passive approach to the conduct of macroeconomic policy tend to believe that markets are self-correcting
a. True
b. False
Indicate whether the statement is true or false
True
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Openness and change in the economic models of India and China have meant for the world economy all of the following EXCEPT
A) hundreds of millions of people have escaped poverty. B) many manufactured goods and services have become cheaper. C) forced some firms to downsize, offshore or otherwise change business practices. D) increased the market power of firms in industrialized countries as they gained most from this evolving trade.
The economy is considered to be at full employment when
A) the frictional unemployment rate is zero. B) the structural unemployment rate is zero. C) the cyclical unemployment rate is zero. D) the unemployment rate is zero.
By 1900, _____ states had a state board of health
a. 17 b. 32 c. 37 d. all
Answer the following questions true (T) or false (F)
1. The Federal Reserve can combat an inflationary gap in the economy by buying government securities in the nation's capital markets. 2. An increase in aggregate demand in the normal range of the economy's aggregate supply curve will increase the general price level in the economy. 3. The goal of macroeconomic policy is to combat inflationary and recessionary gaps which exist in the nation's money market.