Automatic stabilizers act to moderate business cycles primarily through the personal income and consumption channels
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose a ski resort decides to sell its lift tickets "below cost" all season long, charging $20 per day as opposed to $30 per day. In principle, how would each ticket sale affect GDP?
A) GDP would fall by $10. B) GDP would rise by $10. C) GDP would rise by $20. D) GDP would rise by $30 after the appropriate cost-price adjustment has been made.
Name the two international institutions that have been formed to attain higher rates of global economic growth and briefly discuss what each of the agencies does
What will be an ideal response?
Why do economists and policymakers track changes in the? U-6 measure of the unemployment? rate?
What will be an ideal response?
Suppose purchasing power parity holds. If in 1997 the price level in the United States is 100, the price level in Japan is 10,000, and the nominal exchange rate is 100 yen per dollar, while in 1998 the price level in Japan rises to 10,500 and the nominal exchange rate rises to 105, then the price level in the United States in 1998 must be
A. 105. B. 110.25. C. 95. D. 100.