The key to assessing whether fiscal policy is expansionary is to observe the change in the cyclically adjusted budget as a percentage of GDP.
Answer the following statement true (T) or false (F)
True
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Which of the following describe the United States economy in 2008 and and the start of 2009?
A) Real GDP reached a peak. B) The economy was in a recession. C) The economy was in an expansion. D) Real GDP per person increased. E) None of the above answers is correct.
Bertha does not expect any unforseen events but holds some of her savings as currency and coins placed in her sewing basket. This is an example of
A. precautionary demand for money. B. asset demand for money. C. transactions demand for money. D. speculative demand for money.
Suppose the current equilibrium wage rate for housekeepers is $8.60 per hour. An increase in the minimum wage to $7.50 per hour leads to
A) a surplus of housekeepers. B) a shortage of housekeepers. C) no change in the market for housekeepers. D) an increase in the quantity of housekeepers supplied. E) unemployment of housekeepers.
The increase in total output that results from a unit increase in the employment of a variable input is equal to the input's
a. total product. b. marginal product. c. average product. d. marginal cost.