A budget deficit ________
A) may have stimulative effects on economic activity in the short run
B) contributes to lower interest rates in the long run
C) is likely to increase future productive capacity in the long run
D) all of the above
E) none of the above
A
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Government polices aimed at changing the underlying structure or institutions of the nation's economy are called:
A. trade policy. B. structural policy. C. fiscal policy. D. monetary policy.
If a policy change by the Fed is ________, then the change in policy has exactly the same result on the economy as it does when we assume that households and firms have adaptive expectations
A) unannounced or not credible B) unannounced or credible C) announced or credible D) announced or not credible
The opportunity cost of producing one bushel of coffee in Brazil is
A. 1/2 bushels of a hot dog.
B. 20 bushels of hot dogs.
C. 2 bushels of hot dogs.
D. 1/2 of a bushel of coffee in Columbia.
Which of the following is most likely to lead to an inward shift of the aggregate demand curve?
a. A decrease in the prices of raw materials b. A decline in foreign price levels c. A decline in the domestic price level d. An optimistic expectation about the economy's performance in the near future e. A decrease in foreign income