An economist who would most likely use active policy making would support which of the following conclusions?
A) Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment.
B) Pure competition is not typical in most markets.
C) Price flexibility is common in most markets.
D) Supply shocks explain most business cycles.
B
Economics
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Which of these is a supply-side approach to increase growth?
a. Spending on the construction and repair of state highways b. Providing tax benefits to start-up companies c. Investing in the production of arms and ammunitions d. Replacing old aircrafts with new fighter planes e. Increasing transfer payments to retirees
Economics
As new firms enter a market, the existing firms' demand curves will shift to the right
Indicate whether the statement is true or false
Economics