Which of the following can be concluded about the long-run performance of the U.S. economy?
a. It has been able to create employment opportunities but only at the cost of high inflation.
b. It has failed to generate sufficient aggregate demand in the economy
c. It has been one of the most productive economies in the world in terms of growth in real GDP.
d. It has focused fiscal policies mostly at improving aggregate supply.
e. It has suffered from huge fiscal deficits that dampened economic growth.
c
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Governments, not markets, have the best record of allocating investment resources into those projects with the highest expected rate of return
Indicate whether the statement is true or false
Efficiency in a market is achieved when
a. a social planner intervenes and sets the quantity of output after evaluating buyers' willingness to pay and sellers' costs. b. the sum of producer surplus and consumer surplus is maximized. c. all firms are producing the good at the same low cost per unit. d. no buyer is willing to pay more than the equilibrium price for any unit of the good.