In the 1960s, government policy makers believed that they could:
a. stabilize the economy by letting the market system solve all problems.
b. reduce unemployment by running federal budget surpluses

c. eliminate government's role in stabilization policy.
d. use changes in the money supply to virtually eliminate business cycles.
e. use taxation and government spending to fine-tune the economy.

e

Economics

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What is the slope of the line in the graph?

A) +1/2 B) -1/2 C) +2 D) -2 E) -3/4

Economics

Paul has the utility function U(q1,q2 ) = q1q2. If Paul consumes q1 = 4 and q2 = 2 his Marginal Rate of Substitution is

A) -2. B) 1. C) -1. D) -1/2.

Economics