Explain the concept of "crowding in."
What will be an ideal response?
"Crowding in" occurs when a government decreases spending. If the level of output is fixed, when the government reduces spending, other spending components of GDP will increase. In a closed economy, consumption and investment could increase. In an open economy, consumption, investment and net exports could all increase.
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Caleb teaches economics at Yucky State University and is paid $50,000 per year. He also provides economic forecasts for local business for which he charges $100 per hour. Which of the following is true?
a. all of Caleb's income is salary b. some of Caleb's income is salary and some is personal interest c. all of Caleb's income is proprietor's income d. some of Caleb's income is salary and some is proprietor's income e. all of Caleb's income is personal interest
"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement
a. True b. False Indicate whether the statement is true or false
Explain the impact for producers, consumers, and the government of a tariff imposed on imported lumber.
What will be an ideal response?
Quantitative easing (QE) refers to:
A. lending of reserves by the Federal Reserve to commercial banks B. a process similar to open-market sales C. a process similar to open-market purchases D. information that a central bank provides to the financial markets regarding its expected future monetary- policy path