If general tax revenues were used to subsidize production of toothpicks, the government's actions would have
a. widespread benefits and costs
b. widespread costs and concentrated benefits
c. concentrated benefits and costs
d. widespread benefits and concentrated costs
e. widespread benefits and either widespread or concentrated costs
B
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Which of the following statements is correct?
A) Open market purchases are expansionary and open market sales are contractionary. B) Open market purchases are contractionary and open market sales are expansionary. C) Both open market purchases and open market sales are expansionary. D) Both open market purchases and open market sales are contractionary.
Economists who study economic mobility have found that, if a father earns 20 percent above his generation's average income, his son will most likely earn
a. an income equal to his generation's average income. b. 8 percent above his generation's average income. c. 5 percent below his generation's average income. d. 3 percent above his generation's average income.
Changes in the price of oil
a. can only lead to recessions. b. have not contributed much to output fluctuations in the United States. c. change the economy principally by changing aggregate demand. d. created both inflation and recession in the United States in the 1970s.
How do lags affect stabilization policy? Your answer should include three specific types of lags.
What will be an ideal response?