To close a recessionary gap using fiscal policy, the government can _____
Fill in the blank(s) with the appropriate word(s).
increase government spending by less than the size of the gap.
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Macroeconomic policies are government policies designed to affect: A. the environmental impact of all industries.
A. particular sectors of the economy. B. the performance of the economy as a whole. C. the economic activity of the government.
One of the possible roles governments can play in sponsoring growth is to
A) close the nation to trade in order to protect its domestic producers. B) own more of the nation's resources in order to put them to use. C) limit the use of property rights in order to decrease the harm they create. D) make decisions for its citizens as to the most suitable job. E) provide tax incentives to encourage saving.
Linder argues that trade is based on international similarities in preferences rather than international differences in costs of production
Indicate whether the statement is true or false
Which of the following is the best example of an investment in human capital?
a. the purchase of an industrial development bond b. a graduate student who completed 24 semester units in economics last year c. the purchase of a lawn mower by a homeowner d. an unemployed stockbroker who drives a cab in order to pay his bills