Which of the following is a limitation of discretionary fiscal policy?
i. law-making lags
ii. estimating potential GDP
iii. income gap
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
D
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Consider the market for dollars. If the exchange rate rises from 2 pesos per dollar to 4 pesos per dollar
A) the supply curve of dollars shifts leftward. B) the supply curve of dollars shifts rightward. C) there is an upward movement along the supply curve for dollars. D) there is a downward movement along the supply curve for dollars.
A decrease in the unemployment rate which is accompanied by an increase in the inflation rate is represented by a ________ the Phillips curve
A) movement down B) movement up C) upward shift of D) downward shift of
In a forward contract
A) the spot price is held constant. B) you can lock in today's price for the future. C) you can lock in a future price today. D) you can lock in a future quantity today.
Which of the following explains the "beauty premium" differences in wages?
a. People who spend time on their personal appearance may send a signal that they are more productive workers. b. Personal appearance and intelligence are inversely related. c. The "superstar phenomenon" explains the "beauty premium.". d. Better-looking people are more efficient; thus, they are paid an efficiency wage.