The government has the ability to influence the level of output in the short run using monetary and fiscal policy. there is some disagreement as to whether the government should attempt to stabilize the economy.

which of the following are arguments in favor of active stabilization policy by the government? check all that apply.

a. shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
b. the fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
c. changes in government purchases and taxation must be passed by both houses of congress and signed by the president.
d. businesses make investment plans many months in advance.

which of the following are examples of automatic stabilizers? check all that apply.
a. unemployment insurance benefits
b. personal income taxes
c. the discount rate

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i. e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.

True or flase? a. new technological developments can us adapt to depleting sources of natural resources. b. research and development funds from the government to private industry never pay off for the country as a whole; they only increase the profits of rich corporations. c. in order for fledgling industries in poor nations to thrive, they must receive protection from foreign trade. d. countries with few natural resources will always be poor. e. as long as real gdp (gross domestic product) grows at a slower rate than the population, per capita real gdp increases.