Unemployment insurance payments act as automatic stabilizers by:
A. allowing for more consumer spending during prosperity.
B. making the unemployment rate worse during a recession.
C. allowing for more consumer spending during a recession.
D. changing the Phillips curve to a Laffer curve.
Answer: B
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Which of the following correctly describes how the "global pie is baked"?
A) The United States' share of economic pie is increasing while China's share is decreasing. B) The increase in manufacturing has taken place in mainly the advanced economies. C) Asia accounts for about 40 percent of the global pie. D) Emerging economies account for about 25 percent of the global pie. E) Advanced economies account for about 50 percent of the value of the world's production.
A country with an official settlements balance of zero and a negative current account balance is a
A) net creditor. B) net lender. C) net borrower. D) net saver. E) None of the above answers is correct because it is not possible to have an official settlements balance of zero and a negative current account balance.
The optimal size of a club that shares a public good _____
a. gets smaller if external costs decline b. gets larger if external costs decline c. gets smaller if congestion costs decline d. gets larger if congestion costs decline
The equation for the tax multiplier is
a. 1 b. MPS/(1 - MPC) c. (1 - MPC)/MPC d. (1 - MPC)/MPC e. MPC/(1 - MPC)