Expectations are taken to be rational in ________
A) traditional Keynesian and new Keynesian theory
B) new Keynesian and real business cycle theory
C) real business cycle and traditional Keynesian theory
D) traditional Keynesian, new Keynesian and real business cycle theory
B
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We calculate many different kinds of price indexes:
A. in order to capture a complete picture of how price changes are affecting the economy. B. to see how the prices of different groups of goods are changing. C. to measure how different groups of people in the economy are being affected by changing prices. D. All of these statements are true.
Define the average tax rate
The average tariff imposed on dutiable imports in the United States is about _______ percent.
A) 4 B) 12 C) 20 D) 28
It has been suggested that in order to protect U.S. jobs we need to restrict foreign competition by restricting imports.
A. This is a sound economic statement since U.S. firms will have to increase output to make up for the lack of imports leading to increase employment in the U.S. B. This is not a sound economic statement since employment in the U.S. does not depend on imports and exports. C. This is not a sound economic statement since import restrictions lead to a reduction in employment in the export industries of the U.S. D. This is a sound economic statement since the U.S. will still export protecting U.S. jobs.