The stimulus strategy behind tax cuts will only be effective if Ricardian equivalence:
A. holds, and people increase their spending.
B. holds, and people save more.
C. fails to hold, and people increase their spending.
D. fails to hold, and people save more.
C. fails to hold, and people increase their spending.
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In the above table, the unemployment rate is
A) 6 percent. B) 24 percent. C) 18 percent. D) 29 percent.
All else equal, which of the following would tend to cause real GDP per person to rise?
a. a change from inward-oriented policies to outward-oriented policies b. an increase in investment in human capital c. strengthening of property rights. d. All of the above are correct.
Using the annuity rule, an annuity that pays $10 annually has a present value of $200 if the market interest rate is:
A. 20 percent. B. 10 percent. C. 5 percent. D. 15 percent.
If the actual market price were fixed at $15 per unit in Figure 3.2,
Figure 3.2 Supply and DemandÂ
A. There would be a surplus of 20 units. B. There would be a shortage of 40 units. C. There would be a shortage of 20 units. D. There would be a surplus of 40 units.