QUESTION 1 Prior to the Great Depression, the dominant economic view held that fiscal policy could effectively eliminate a recessionary gap and return the economy to its potential output. economies should be able to reach full employment through a process of self-correction. monetary policy should be used to move the economy back to its potential output because it was more immediate than fiscal policy. any movement away from potential output was due to either an excess aggregate demand or an excess aggregate supply. 2.5 points QUESTION 2 What is the value of the MPC if the spending multiplier is 10

Which feature transfers a slide show into a word-processing document?

How will firms solve the problem of an economic surplus a. decrease prices to the market equilibrium price b. decrease prices so they are below the market equilibrium price c. increase prices

The following information is available for jase company: market price per share of common stock $25.00 earnings per share on common stock $1.25 which of the following statements is correct? a. the price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. b. the market price per share and the earnings per share are not statistically related to each other. c. the price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year. d. the price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year.