When the unemployment rate is low, the impact of additional spending on real output will
a. be larger than when the unemployment rate is high.
b. be smaller than when the unemployment rate is high.
c. be the same as when the unemployment rate is high.
d. place downward pressure on the general level of prices, leading to deflation.
B
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The U.S. Bureau of Labor Statistics forecasts that ________ fastest-growing occupations over the next 10 years will be in health care
A) less than 2 of the 10 B) 13 of the 20 C) just under half of the D) over 95 percent of the
If decision makers adjust fully to demand stimulus policies, persistent expansionary macro-policy will lead to
a. inflation with no lasting reductions in unemployment. b. a permanent reduction in unemployment. c. lower interest rates. d. more rapid economic growth.
Excess reserves make a bank less vulnerable to runs, but bankers do not like to hold excess reserves because holding excess reserves
A. are disliked by depositors. B. means lower profits for banks. C. are discouraged by government regulators. D. All of these responses are correct.
Which one of the following transactions would be included in GDP?
A. Ms. Kim pays $50 for a used picture frame at a neighborhood garage sale. B. Mr. Doe donates $500 to his town's junior college scholarship fund. C. Ms. Bartolini pays $500 to fix the front end of her car damaged in a recent accident. D. Ms. Smith pays $5,000 to purchase 100 shares of Microsoft stock.