Which of the following is true about fiscal policy?
What will be an ideal response?
Proper timing of changes in discretionary fiscal policy is both crucially important and difficult to achieve.
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Deepening human capital involves
a. increasing the number of workers. b. increasing the number of machines per worker. c. increasing the levels of education per worker. d. using more machines than workers.
When foreign countries buy wheat grown in the United States, they are generating a
A. Supply of U.S. dollars and a supply of a foreign currency. B. Supply of U.S. dollars and a demand for a foreign currency. C. Demand for U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.
Price controls
A) exist when firms decide that they want to charge a higher price for their product. B) exist when consumers boycott a product. C) are government-mandated minimum or maximum prices that may be charged for goods. D) are the benefit of discount stores like Sam's Club.
At the beginning of the recession of 2007-2009, real GDP in the United States was ________ potential GDP, and in June 2009, real GDP was ________ potential GDP
A) below; above B) below; below C) above; below D) above; above