Countercyclical policy:
What will be an ideal response?
: fiscal policy in which taxes are lowered and expenditure is raised when the economy is weak, and the opposite occurs when the economy is strong
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An increase in the required reserve ratio will lead to a/an:
a. increase in the monetary base. b. increase in the money multiplier. c. increase in the money supply. d. both b and c. e. both a and c.
If the growth rate of resources is 2 percent and per capita real output is growing at 4 percent, then total factor productivity has fallen by 4 percent
a. True b. False Indicate whether the statement is true or false
You receive $500 today which you plan to save for two years. Also, in two years you will be given another $500 . If the interest rate is 5 percent, what is the present value of the payment of $500 today and the $500 in two years?
a. $500(1.05)2 + $500/(1.05)2 b. $500(1.05)2 + $500 c. $500 + $500/(1.05)2 d. $500 + $500
The figure above shows the market for annual influenza immunizations the United States. Area A + Area B is the
A) deadweight loss when there is not the illustrated subsidy. B) loss in efficiency from the illustrated subsidy. C) gain in efficiency from the illustrated subsidy. D) remaining deadweight loss when there is the illustrated subsidy. E) equilibrium with the illustrated subsidy.