According to classical economists, in recessions, the government should
A. eliminate barriers to labor market adjustment, such as burdensome regulations on businesses.
B. stimulate the economy to increase demand.
C. actively use fiscal policy to combat the recession.
D. increase the minimum wage so that poor people will be able to afford necessities.
Answer: A
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The concept of twin deficits refers to ________
A) the phenomenon of simultaneous trade and government budget deficits B) the phenomenon of simultaneous government and private budget deficits C) the phenomenon of simultaneous state and federal budget deficits D) all of the above E) none of the above
Which of the following is true of an annually balanced federal budget? a. Most economists agree that the federal government should balance its budget just as each household does. b. Such a policy would require the government to increase its spending when tax receipts decrease
c. Such a policy became popular between the 1930s and 1960s. d. Such a policy guarantees that the economy is its potential level. e. Such a policy could worsen a contractionary gap.
Expansionary monetary policy tends to:
A. reduce the interest rate and increase capital inflows. B. increase both the interest rate and capital inflows. C. increase the interest rate and reduce capital inflows. D. reduce both the interest rate and capital inflows.
Infant mortality rate is associated with low birth weight. If the U.S. had the same birth weight distribution as Sweden, its infant mortality rate would fall by over ______ percent.
a. 30 b. 40 c. 10 d. 50 e. 20