Refer to Figure 5-3. With insurance and a third-party payer system, the equilibrium quantity of medical services is

The economist who recognized that lags in policy can explain the difficulty in conducting monetary policy was

A) Adam Smith. B) John Nash. C) Milton Friedman. D) Joseph Schumpeter.

In the Keynesian model, if interest rates fall below what people consider normal, households will respond by

A) decreasing the saving rate. B) reducing the saving rate. C) holding more money. D) holding more bonds.