When President Obama took office in January 2009, he pledged to pursue an expansionary fiscal policy to try to pull the economy out of the recession
The next month, Congress passed the American Recovery and Reinvestment Act of 2009, a $840 billion package of ________ that was the largest fiscal policy action in U.S. history.
A) interest rate reductions and increases in the money supply
B) treasury bond purchases and mortgage-backed securities purchases
C) commercial and investment bank bailouts
D) spending increases and tax cuts
D
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For a particular production function, over the range of output where marginal product rises as units of the variable input are added to the fixed input, marginal cost will be:
A) increasing. B) constant. C) decreasing. D) cannot be determined without additional information.
A difference between the classical and new classical models is that
a. classical economists assumed that labor suppliers knew the real wage, while the new classical economists assume they form a rational expectation of the real wage. b. classical economists assumed that the money wage was flexible while the new classical economists assume it was fixed. c. new classical models do not assume perfect competition. d. labor supply in the classical model is a function of the real wage while labor supply depends on the money wage in the new classical model. e. both a and c.
A financial intermediary accepts deposits from savers and makes loans to borrowers
a. True b. False Indicate whether the statement is true or false
If there is an unanticipated increase in aggregate demand, which of the following is most likely to occur?
What will be an ideal response?