Complete crowding out occurs when
A) monetary policy has no effect on income.
B) fiscal policy has no effect on income.
C) monetary policy has no effect on interest rates.
D) fiscal policy has no effect on interest rates.
B
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Game theory analysis of macro policy suggests that as voters become more short-sighted
A) policy makers will be tempted to raise taxes. B) policy makers will be forced to balance the budget. C) policy makers will adopt policies today to achieve balanced budgets in the future. D) all of the above E) none of the above
The capture theory of regulation predicts that regulations bring ________ to producers and impose ________ on any individual consumer
A) small benefits; small costs B) small benefits; large costs C) large benefits; small costs D) large benefits; large costs E) large benefits; no costs
We collapse the consumer's current-period and future-period budget constraints into a single lifetime budget constraint by
A) assuming no default. B) substituting for savings. C) eliminating consumption smoothing. D) assuming the consumer knows the future.
Find the size of the civilian labor force from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000
a. 1,425 b. 1,450 c. 1,500 d. 1,525 e. 2,000