Because of the recessions in 1983 and 1991, the structural deficit was far larger than the actual deficit in those years
a. True
b. False
Indicate whether the statement is true or false
False
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In the financial crisis that precipitated the 2007-2009 recession, people systematically overestimated their prospects for financial gain. Which branch of economics would most likely have expected to predict this?
A. Neoclassical economics. B. Keynesian economics. C. Behavioral economics. D. Classical economics.
Reducing environmental pollution beyond the socially optimal amount increases society's welfare
a. True b. False Indicate whether the statement is true or false
As debit cards become more popular, individuals will reduce their holdings of currency. Other things constant, how will this impact the money supply?
a. Because more money is held as deposits at banks, the money supply will fall. b. Because more money is held as deposits at banks, the money supply will expand. c. Because debit card expenditures are counted in M2 but not M1, the M1 money supply will fall. d. Because debit card expenditures are counted in M1 but not M2, the M2 money supply will fall.
Because a decrease in real autonomous spending results in a ________ in the price level, the ultimate effect on real GDP is ________ than predicted by the multiplier.
A. fall; smaller B. rise; larger C. rise; smaller D. fall; larger