Which of the following is true?
a. Economic freedom is present if a country is a political democracy.
b. Economic freedom ratings indicate the consistency of a nation's institutions and policies with personal choice, freedom of exchange, and protection of private property.
c. Economies that are highly free tend to grow less rapidly than those with less economic freedom.
d. All of the above are correct.
B
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Provisions in the budget that cause government spending to rise or taxes to fall without legislation when GDP falls are known as
A) primary deficit enhancers. B) expansionary fiscal stimulus. C) non-political fiscal policy. D) automatic stabilizers.
The Phillips curve traces a set of combinations of rates of
a. interest and unemployment b. real GDP and inflation c. real GDP and interest d. inflation and interest e. unemployment and inflation
A reduction in the demand for labor will cause wages to:
A. decrease and employment to increase. B. increase and employment to decrease. C. decrease and employment to decrease. D. increase and employment to increase.
Which one of the following is true about the U.S. Federal Reserve System?
A. There are 14 members of the Federal Reserve Board. B. The head of the U.S. Treasury also chairs the Federal Reserve Board. C. There are 10 Federal Reserve Districts. D. The Federal Open Market Committee (FOMC) has more members than does the Federal Reserve Board of Governors.