The government is pursuing an expansionary fiscal policy if it
What will be an ideal response?
increases government spending and/or reduces taxes
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Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. a productivity slowdown accompanied by a decrease in the labor supply. B. skill-biased technological change. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.
In the expanded circular flow diagram, the government supplies
A) factors of production to the factor market. B) goods and services to households. C) factors of production to firms. D) goods and services to the product market.
The Fed's objectives have remained the same since its inception
a. True b. False
The term "random walk" means that stock prices are fairly predictable
a. True b. False Indicate whether the statement is true or false