If the government is running a cyclically adjusted budget deficit, ________ fiscal policy is ________ because aggregate expenditure is increasing
A) discretionary; contractionary
B) discretionary; expansionary
C) expansionary; ineffective
D) contractionary; appropriate
B
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In 2016, interest payments on the national debt accounted for almost _____ of federal outlays
a. 7 percent b. 25 percent c. 14 percent d. 52 percent e. 40 percent
Suppose that in 2009 the total value of exports was $250 million, while imports were $225 million. The contribution of net exports to GDP was
a. $250 million b. $25 million c. $475 million d. $225 million e. -$25 million
Given full-employment output = $2,800, equilibrium output = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full- employment level of national output?
a. $300 decrease in taxes b. $75 increase in government spending c. $75 decrease in taxes d. $300 increase in government spending e. $75 decrease in government spending
Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital. What are two alternative explanations for why college grads receive higher pay?