Activists of the policies believe that
A) the self-correcting mechanism through wage and price adjustment is very slow.
B) wages and prices are sticky.
C) the government needs to pursue active policy to eliminate high unemployment when it develops.
D) all of the above.
D
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The Fed can directly lower the inflation rate
Indicate whether the statement is true or false
Table 36-2 ? Domestic ? ? ? GDP Expenditure ? Exports Imports Total Expenditures (Y) C+ I + G (X) (IM) C+ I + G + (X?IM) $2,500 $3,100 $650 $250 _____ 3,000 3,400 650 300 _____ 3,500 3,700 650 350 _____ 4,000 4,000 650 400 _____ 4,500 4,300 650 450 _____ 5,000 4,600 650 500 _____ 5,500 4,900 650 550 _____ From Table 36-2, what can you conclude about net exports as GDP rises?
A. Net exports rise and then fall as GDP rises. B. Net exports are constant as GDP rises. C. Net exports rise as GDP rises. D. Net exports fall as GDP rises.
Farm groups spend considerable amounts of money to maintain and enlarge political support for farm subsidies. This illustrates:
A. coalitions. B. rent-seeking activity. C. the special-interest effect. D. the voting paradox.
During the Great Depression, what appeared to be ________ fiscal policy was actually not when the ________ budget deficit or surplus is examined
A) expansionary; actual B) expansionary; cyclically adjusted C) contractionary; actual D) contractionary; cyclically adjusted