One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
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The 1981 economic recovery act ________ net investment according to ________
A) greatly increased; Barry Bosworth B) decreased; Barry Bosworth C) increased; Martin Feldstein D) decreased; Martin Feldstein
According to Milton Friedman, the reason there are two Phillips curves is because
A) the expected inflation rate is always higher than the actual inflation rate. B) wages are inflexible. C) prices are inflexible. D) the expected inflation rate does not instantaneously adjust to changes in the actual inflation rate. E) the expected inflation rate is equal to 1 minus the actual inflation rate.
Contrast a fixed-rate exchange rate system and a flexible-rate exchange system in terms of a foreign currency shortage precipitated by an increase in U.S. demand for a foreign good.
What will be an ideal response?
Why does the production possibility frontier have a negative slope?
What will be an ideal response?