Economics is the study of the ________ people make to attain their goals, given their ________ resources

Which of the following factors strengthens the case for policy activism?

A) flexible wages B) lack of real-business-cycles C) sticky prices D) flexible prices

If the Ricardian equivalence proposition is correct, then

A) deficits harm future generations. B) deficits reduce investment spending. C) deficits stimulate the economy in the short run. D) all of the above E) none of the above