Which of the following is true about automatic stabilizers?
a. Automatic stabilizers are a part of discretionary fiscal policy.
b. The federal funds rate is an example of an automatic stabilizer.
c. An automatic stabilizer is any program that responds to fluctuations in the business cycle in a way that moderates the effects of those fluctuations.
d. Any kind of trade policy adopted by the government will be considered as an automatic stabilizer.
e. When income rises, automatic stabilizers increase/boost spending.
c
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An important source of structural unemployment is
A) recessions. B) people looking for the right job decide to change jobs. C) unemployment insurance benefits. D) seasonal variations in aggregate demand.
Fred has always been known as "the rich kid." Strictly speaking, this must mean that ________
A) Fred has a lot of cash B) Fred's income is quite high C) Fred won the lottery before he was legally eligible D) Fred has a flashy wardrobe E) Fred has a lot of wealth
The Widgetville County Wolfpack has won 90 percent of their last 20 games played under a full moon. This means:
A. the weather affects how they play. B. there is a positive correlation between their play and the occurrence of a full moon. C. that full moons cause the team to play better. D. that causation can be found between the two events.
A monopoly firm operating with no trade will produce the profit-maximizing quantity where:
a. the firm's MC = MR, where MR is declining and below price. b. MR begins to increase and MC begins to decrease. c. P = MC. d. the firm's MC = MR, where MR is declining and equal to price.