Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to ________ economists, under rational expectations an expected decrease in government spending would not change AD or AS.
A. Keynesian
B. the new classical
C. monetarist
D. none of the above
Answer: B
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Which of the following is most likely to reduce the market wage rate in a job category?
a. The job requires substantial out-of-town travel. b. Employees have considerable flexibility in choosing their work hours. c. The job is widely viewed as dangerous. d. The job requires employees to move from city to city quite often.
In economics, the term ________ means "additional" or "extra."
A) allocative B) equity C) marginal D) optimal
Arguments for discretionary policies include
A) policy rules can be too rigid because they cannot foresee every contingency. B) the time-inconsistency problem can lead to poor economic outcomes. C) discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run. D) all of the above.
The lowest quintile of households in the income distribution receives about:
A. 3.2 percent of the total income. B. 3.4 percent of the total income. C. 8.5 percent of the total income. D. 10 percent of the total income.