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CHAPTER 5 QUIZ

Question 1


The demand for lumber decreased in August. Supply of lumber has remained constant and five months later there still has been no change in lumber prices. This is an example of Correct: A sticky rate. ------------------------------------------------------------------Question 2 A group of Senators introduce legislation that would subsidize employers' hiring of recent high school graduates. This legislation is designed to stimulate the economy. This legislation is in line with Correct: Keynesian economics. ------------------------------------------------------------------Question 3 Fine tuning refers to Correct: The government's part in controlling rising cost of living as well as joblessness. -------------------------------------------------------------------

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Eco 561 chapter 5 quiz  
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