If you were building a macroeconomic model that explores the effect of the aging population on the needed expenditure for Social Security and Medicare, the endogenous variable(s) would be the
A) aging population.
B) needed expenditure on Social Security.
C) needed expenditure on Medicare.
D) needed expenditure on both Social Security and Medicare.
D
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Which of the following was the main reason for increased counterparty risk in the shadow banking system prior to the financial crisis of 2007-2009?
A) increased leverage B) government insuring money market deposits C) many firms borrowing long term for short-term investments D) trading of derivatives on exchanges
Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 7 percent, and there is no price shock. The current inflation rate is ________
A) 2.7 percent B) 3 percent C) 0.9 percent D) 3.3 percent E) none of the above
Hardee's announces "buy one get one free" breakfast sandwiches. This is an example of:
A. the use of incentives. B. a macroeconomic decision. C. hoarding scarce resources. D. how people assess the health benefit of fast food breakfast.
People who can earn higher market wages, other things constant, will
a. provide more labor to nonmarket work b. be more inclined to supply their labor to market work than to nonmarket work c. be more inclined to supply their labor to nonmarket work than to market work d. provide more labor to nonmarket work even if the market can provide the services more cheaply e. provide less labor to market work and more labor to nonmarket work