Provisions that cause changes in government spending and taxes that do not require action of the President or Congress are called
A) discretionary fiscal policy. B) automatic stabilizers.
C) private stabilization effects. D) discretionary stabilizers.
B
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A small reduction in a country's growth rate is a concern to policy makers because
A) a small change can have large effects on per capita GDP over time. B) a reduction usually leads to future reductions until finally the economy stagnates. C) policy makers focus too much on economic growth and not enough on increasing savings rates. D) the larger GDP is the better the economic welfare will be in the future.
Which of the following is a possible outcome of a minimum wage imposed by a government? a. It leads to an increase in consumer surplus
b. It favors women and children and helps improve their standard of living. c. It eradicates the problem of unemployment from the market. d. It creates a labor surplus or unemployment. e. It creates a labor deficit.
What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?
When the real wage is below the equilibrium price in the labor market ________
A) we have an excess supply of labor and the real wage should fall B) we have an excess demand of labor and the real wage should fall C) we have an excess demand of labor and the real wage should increase D) we have an excess supply of labor and the real wage should increase E) none of the above