If the economy is experiencing less than full-employment, the Keynesian school recommends that the government:
A. do nothing to stimulate the economy.
B. undertake fiscal policy to stimulate aggregate demand.
C. undertake fiscal policy to stimulate aggregate supply.
D. balance the budget to stimulate aggregate demand.
Answer: B
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Suppose you are an attorney, and you are defending a client in a wrongful death suit
The deceased was a pilot for an aerial acrobatics team, and the opposing attorney has prepared an an estimate of the value of lost income that includes the mortality rate for all pilots. You should argue that the attorney's estimate of lost earnings is too ________ because the mortality rate for aerial acrobats is ________ than for other types of pilots. A) low, lower B) low, higher C) high, lower D) high, higher
Under a gold standard,
a. a nation's currency can be traded for gold at a fixed rate b. a nation's central bank or monetary authority has absolute control over its money supply c. new discoveries of gold have no effect on money supply or prices d. prices are constant (there is no inflation and no deflation) e. all international transactions are financed with gold
A consumer chooses an optimal consumption point where the
a. marginal rate of substitution is maximized. b. rate at which the consumer is willing to trade one good for another equals the price ratio. c. price ratio is minimized. d. All of the above are correct.
Which statement is true?
A. Since the early 1990s the U.S. trade deficit has risen every year. B. Net exports has always been positive. C. The U.S. exports more services than merchandise (in terms of dollars). D. The U.S. balance of trade was positive for most of the 20th century.