Those who favor passive policy making do so because they conclude that
A) price and wage flexibility is a common and speedy occurrence.
B) there is a stable trade-off between inflation and unemployment in the short run.
C) price and wage flexibility is an uncommon occurrence.
D) pure competition is not typical in most markets.
A
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A payoff matrix is a table listing the expected economic profit resulting from different possible strategies
a. True b. False
Which of the following best illustrates the circular flow model in action?
A. Bobbie goes to work and builds cars, and uses the income she receives to buy food at the grocery store. B. Evan buys a new couch; the owner of the furniture store uses some of the money from the sale to pay her supplier, and uses the rest to take her family out to dinner. C. Boeing experiences a surge in orders for new airplanes, prompting the company to hire more workers. D. All of these answers illustrate the workings of the circular flow model.