The case for government stabilization policy is made more compelling if the
A. self-correcting mechanism works very slowly.
B. self-correcting mechanism works too fast.
C. value of the multiplier is very small.
D. aggregate supply curve is very flat.
Answer: A
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In the movie Cast Away, Tom Hanks plays a FedEx efficiency expert stranded on a deserted island. While on the island, he divides his time between catching fish, gathering coconuts, painting, and building a raft
Suppose that these were Mr. Hanks' only activities. Did he face an opportunity cost from pursuing any of these activities? Why or why not?
If Country A exports a good to Country B, who is made worse off?
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