A good reason for policy makers to pursue a goal of stabilizing economic activity is that ________
A) high inflation is always accompanied by high variability of inflation
B) high unemployment causes human misery and lost output
C) in a stable economy, there is little or no structural inflation
D) all of the above
E) none of the above
B
Economics
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The neoclassical growth theory says, in part, that
A) a population explosion driven by economic growth will end economic growth. B) technological change leads to economic growth. C) the differences in nation's growth rates will persist indefinitely. D) technology does not play a role in economic growth.
Economics
Fear of a major recession causes stock prices to fall, everything else held constant, which in turn causes consumer spending to
A) increase. B) remain unchanged. C) decrease. D) cannot be determined.
Economics