Fiscal policy is
A) the selling of government bonds by the Treasury.
B) the deliberate manipulation of the money supply designed to affect the interest rate.
C) the deliberate manipulation of taxation and spending designed to affect the economy.
D) the selling of foreign exchange reserves designed to change the exchange rate.
E) All of the above.
C
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The unemployment rate does not reflect the true extent of the unemployment problem. Which of the following groups is not counted as unemployed in the official unemployment statistics?
a. The underemployed and the cyclically unemployed b. The underemployed and discouraged workers c. Discouraged workers and the frictionally unemployed d. The frictionally unemployed and the structurally unemployed e. The cyclically unemployed and the frictionally unemployed
If the elasticity of demand for the latest American Idol album is 1.4, this means
A. a 1 percent increase in the price leads to a 14 percent decrease in quantity demanded. B. few substitutes for the American Idol album exist. C. a 5 percent increase in the price leads to a 7 percent decrease in quantity demanded. D. a 10 percent decrease in the price leads to a 140 percent increase in quantity demanded.
Over the 1980 and 1990s, countries that were given large amounts of aid:
A. experienced mixed impacts on their GDP growth. B. experienced growth of 1 percent regardless of the policy in place. C. saw GDP shrink by 1 percent regardless of the policy in place. D. saw GDP shrink by 1 percent even if they had sound policy in place.
a change in saving divided by a change in income is equal to ___________
What will be an ideal response?