During a recession, policy makers who use the AS/AD model would probably recommend an open market:
A. purchase of government securities that raises interest rates.
B. sale of government securities that reduces interest rates.
C. sale of government securities that raises interest rates.
D. purchase of government securities that reduces interest rates.
Answer: D
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The aggregate expenditure model focuses on the ________ relationship between real spending and ________.
a. short-run; real GDP b. short-run; inflation c. long-run; real GDP d. long-run; inflation
Deadweight losses from tariffs and quotas in high-income countries
A) are small enough to be ignored. B) have been reduced since the mid-1990s. C) are greater than consumer losses from tariffs and quotas. D) can be justified by jobs protected.
The federal spending appropriation for Agriculture in the Fiscal Year 2016 was
A. $200 billion. B. $283 billion. C. $26 billion. D. $2 billion.
Factors that contributed to the higher U.S. labor productivity growth in 1995-2012 relative to the earlier period include the following, except:
A. Microchip and information technologies B. New start-up firms and increasing returns C. Global competition D. Population growth