Believers in fixed rules maintain that
a. with accurate forecasts, we can see inflation coming at least one year ahead of time.
b. the length of stabilization lags is not important because fiscal policy actions are taken quickly and the economy feels the effect on aggregate demand quickly.
c. we should forget about discretionary policy and put the economy on autopilot, relying instead on automatic stabilizers and the economy's self-correcting mechanism.
d. the economy's self-correcting mechanism is slow and not very reliable, even with automatic stabilizers.
c
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In the case of a linear demand curve, average revenue is equal to price, while (with the exception of Q = 1 ) marginal revenue is less than price
Indicate whether the statement is true or false
Which of the following is true about sole proprietorship in the United States?
a. It is the most common form of business organization. b. It is responsible for a large portion of total production of goods and services. c. It offers the owner the least personal liability of any form of business organization. d. There is no opportunity cost to operating the business. e. Only one individual can work in such a firm.