Did President Obama’s $787 billion fiscal stimulus package of early 2009 work? Name several facts in support of the proposition that it did. Also, list the arguments of the skeptics.
What will be an ideal response?
Facts supporting the proposition that President Obama’s $787 billion fiscal stimulus package worked include the following:1. Real GDP growth moved from the minus 7 percent range to the plus 3 percent range within a few quarters.2. Job losses, which were running over 700,000/month during January and February 2009, started to diminish immediately and positive job growth resumed in January 2010.3. Some of the sectors specifically targeted by the stimulus and related policies—such as state and local government spending, automobiles, and housing—showed notable improvements.Skeptics maintain the following arguments:a. Employment continued to fall throughout 2009 even though the stimulus bill was passed in February.b. The economy did considerably worse than the Obama administration had forecast when it asked for the stimulus bill.c. The economy has a natural self-correcting mechanism, so eventually, the recession would have ended.d. Monetary policy was more responsible for the recovery than fiscal policy was.
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Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. leaving a big tip for the waiter after a dinner date c. offering a cheap engagement ring to your bride d. Visiting the beauty salon before a big date
Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an airplane for
$6,000 . pays $1,300 for fuel and maintenance, and hires one worker for $30,000 . Sam's total revenue from pilot training classes this year equaled $90,400 . Sam's explicit costs this year equals: a. $84,400. b. $39,000. c. $55,000. d. $45,600. e. $40,000.
In the short run, all costs are variable
a. True b. False Indicate whether the statement is true or false
Compared to the quantity produced under perfect completion, what does the monopolist produce?
a. The same amount as the perfect competition quantity b. More than the perfect competition quantity c. Less than the perfect competition quantity d. Either more or less than the perfect competition quantity