Huge increases in government spending and record low levels of unemployment during the Vietnam War era in the late 1960s led policy makers to fear that
A) the economy was slipping into a recession, which would increase unemployment.
B) the economy was growing too fast, which would increase unemployment.
C) the economy was slipping into a recession, which would increase inflation.
D) the economy was growing too fast, which would increase inflation.
D
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The gap between potential GDP and real GDP had been as large as 7 percent during the worst of the 2007-2009 recession. By 2015, the gap
A) was positive, with real GDP exceeding potential GDP. B) had been eliminated. C) remained at 7 percent. D) was still nearly 3 percent.
The demand for pizzas in a large town is written as:
Qd = 120 - 10P + 5Pb - 0.5Ps - 10Y, where Qd is the quantity demanded, P is the price, Pb is the price of burritos, Ps is the price of soft drinks sold in the pizza restaurants, and Y is personal income per month (in thousand dollars). If there is a $1,000 increase in personal income, how will the Qd change? A) increase by 10 B) decrease by 10 C) unchanged D) not enough information provided
A reserve requirement of 25 percent would mean that each dollar of reserves could support ____ of demand deposits
a. $0.25 b. $0.75 c. $1.33 d. $4.00
The largest source of revenue for funding schools in the average US city is
a. federal income taxes b. state income taxes c. city property taxes d. state and city sales taxes