Which of the following perspectives exerted the most impact on fiscal policy during the Great Depression?
a. the Keynesian view
b. the supply-side view
c. the view that the federal government should maintain a balanced budget
d. the new classical view that fiscal policy exerts little impact on demand and output
C
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Which of the following is NOT true about a cartel?
A) Members earn economic profits. B) Members experience large economies to scale relative to industry demand. C) Cartels will set common prices for their members. D) Members of a cartel will have production quotas.
Data on annual percentage changes in real GDP, consumption, and investment in the United States shows that fluctuations in investment _____
a. are noticeably smaller during expansions than during recessions b. are roughly similar to fluctuations in consumption c. are roughly similar to fluctuations in GDP d. are closely followed by economic forecasters because those fluctuations often signal that a recession will occur e. account for most of the variability in GDP