If the economy is in recession, explain what advice you would give the President if you were a classical economist. What advice would you give if you were a Keynesian?
You would tell the President not to intervene in the economy, if you were a classical economist. The
economy will naturally tend toward full employment. If you were a Keynesian, you would advocate
intervention in the form of lower taxes or more government spending in periods of recession because the
economy can be in equilibrium at less than full employment.
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Traveler's checks are included in
A) M1 only. B) M2 only. C) both M1 and M2. D) neither M1 nor M2.
If the number of potential workers in a country is 25 million, and the size of the labor force in the country is 17 million, the number of adults not in the work force will equal:
A) 43 million. B) 8 million. C) 25 million. D) 17 million.
In 2015, health care's share of gross domestic product in the United States was about
A) 6.5 percent. B) 18 percent. C) 45 percent. D) 62.5 percent.
Advocates of real business cycle theories argue that all of the following could cause a recession except
a. a fall in consumer expectations. b. natural disasters. c. higher taxation. d. increases in the price of oil.