Procyclical fiscal policies:
A. reduce cyclical fluctuations in the economy, but not as effectively as countercyclical fiscal policies.
B. increase cyclical fluctuations in the economy.
C. reduce cyclical fluctuations in the economy more effectively than countercyclical fiscal policies.
D. reduce cyclical fluctuations in the economy about as effectively as countercyclical fiscal policies.
Answer: B
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Say's law implies that
A) surpluses never occur. B) there will always be unemployment. C) surpluses or shortages are possible, but only for a short time. D) shortages never occur.
Sasha has a master's degree in writing, and currently works full-time as a 2nd grade classroom helper. She submits articles for the local paper on occasion, and gets paid only when the editor agrees to publish a submission. Sasha would love to be a full-time reporter. The best way to describe Sasha is to say she is ________; the Bureau of Labor Statistics would count Sasha as ________.
A. employed; employed B. underemployed; employed C. underemployed; underemployed D. discouraged; underemployed
The consumption function shows the relationship between planned real consumption spending and
A. the average propensity to consume. B. real disposable income. C. the marginal propensity to consume. D. planned real saving.
Adverse selection and moral hazard are problems that arise in the presence of asymmetric information.
Answer the following statement true (T) or false (F)