An Economist Who Would Most Likely Use Active Policymaking Would

question 220

Multiple Choice

An economist who would most likely use active policymaking would support which of the following conclusions?

• A) Pure competition is not typical in most markets.
• B) Price flexibility is common in most markets.
• C) Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment.
• D) Supply shocks explain most business cycles.

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Definitions:

Corporate Price

The price at which a corporation offers its products or services to customers, often influenced by costs, market demand, and competitive landscape.

Overbooking

The practice, often used in the travel and hospitality industry, of accepting more reservations than there is available capacity, based on predictions of last-minute cancellations.

Asset Value

The monetary worth of physical or non-physical items owned by an individual or entity, which can be converted into cash or provide economic benefits.

Deadline

A specific time or date by which a task must be completed or a project must be finalized.