How do advocates of discretionary stabilization policy view frequent changes in spending and tax policy?
a. The changes make the economy more difficult to forecast.
b. The changes make life more difficult and hectic for Congress and the Fed.
c. The changes smooth out the business cycle, making planning easier.
d. The changes cause more instability in the economy and make planning more difficult.
c
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A pure monopoly
a. is the only firm that produces all of the products its competitors produce b. is the single seller of a unique product c. is bigger than all its competitors combined d. has only one customer e. is always profitable in the short run
Which of the following is not a component of gross investment?
A. Construction of a suburban housing project. B. The purchase of a new drill press by the Ajax Manufacturing Company. C. The piling up of inventories on a grocer's shelf. D. The purchase of 100 shares of AT&T by a retired business executive.