In the Keynesian analysis, government spending
a. refers to spending by federal, state, and local governments.
b. is much less important than consumption or planned investment.
c. is usually the most unstable component of aggregate expenditure.
d. None of these.
a. refers to spending by federal, state, and local governments.
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The goal of expansionary fiscal policy is to increase
A. aggregate supply. B. real GDP. C. unemployment. D. the price level.
Because barriers to entry limit the amount of competition in various markets, government policy should be designed to reduce or eliminate such barriers wherever possible
Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. Based on the benefit-cost analysis of the Clean Water Act presented in the text, Total Social Benefits (TSB) exceed Total Social Costs (TSC) and hence U.S. water quality standards are set at the allocatively efficient level. 2. According to the benefit-cost analysis of the Clean Water Act presented in the text, water quality standards set by the Clean Water Act are too stringent. 3. Receiving water quality standards and total maximum daily loads are equivalent. 4. Mercury is the leading pollutant for U.S. bays and estuaries. 5. Technology-based effluent limitations are defined by a states’ receiving water quality standard.
The natural level of output is the level of output that occurs when
A) the goods market and financial markets are in equilibrium. B) the economy is operating at the unemployment rate consistent with both the wage-setting and price-setting equations. C) the markup (m) is zero. D) the unemployment rate is zero. E) there are no discouraged workers in the economy.