If short-run equilibrium output equals 20,000 and potential output (Y*) equals 25,000, then this economy has a(n) ________ gap that can be closed by ________.
A. expansionary; increasing government purchases
B. expansionary; increasing transfer payments
C. recessionary; increasing taxes
D. recessionary; increasing government purchases
Answer: D
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The government banking regulation that places an upper limit on the money supply is
a. deposit insurance by the FDIC. b. reserve requirements on bank deposits. c. periodic bank examinations and audits. d. limitations on the types of assets that a bank may own.
Term limits on political offices have all of the following properties except:
A. encourage people to run for multiple different political offices. B. discourage corruption by ensuring that one person isn't allowed to hold onto power for too long. C. can encourage corruption in reality by placing an official in power with no incentive to answer to his constituency. D. prevent officials from holding office for longer than a certain amount of time.
If a country choose to dollarize, it has relinquished its
A) monetary policy autonomy. B) pain from realignments C) ability to conduct fiscal transactions. D) ability to borrow internationally.
Betty goes out to enjoy a bouffe with her friend instead of practicing calculus problems for her maths examination that is due the following day. This implies that the opportunity cost of the bouffe to Betty is zero
a. True b. False Indicate whether the statement is true or false