Those who favor an active approach to policy believe that:
a. discretionary monetary policy cannot be used to help the economy since monetary policy lags are long.
b. discretionary fiscal policy cannot be used to help the economy since fiscal policy lags are long
c. lags associated with implementing policies are too long and unstable for discretionary policy to be effective.
d. despite the lags involved, implementing discretionary policy is preferable to inaction.
e. the discretionary fiscal policy cannot be used to help the economy since it leads to inflation.
d
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If a perfectly competitive firm finds that the price exceeds its ATC, then the firm
A) will raise its price to increase its economic profit. B) will lower its price to increase its economic profit. C) is making an economic profit. D) is incurring an economic loss. E) is making zero economic profit.
In order to prosper, entrepreneurs in a market economy must
A) have at least one million dollars of personal wealth for the financing of new projects. B) find ways to slow technological change. C) undertake projects that create wealth and increase the value of resources. D) undertake projects that require resources that are more valuable than the products