If fiscal policy is going to exert a stabilizing impact on the economy, it must be
a. instituted by the Federal Reserve system.
b. expansionary during an economic boom but restrictive during a recession.
c. timed correctly.
d. passed by a three-fifths majority in Congress.
C
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Indicate whether the statement is true or false
Economic growth caused by increased employment creates a trade-off between income and
a. present-day living standards b. research and development expenditures c. investment in physical capital d. future living standards e. leisure time
Jacqueline, a brilliant new Ph.D. in economics, has turned down many job offers because she hopes eventually to teach at one of the top ten universities in her field. What type of unemployment is she experiencing?
What will be an ideal response?
Suppose that there is a renewed interest in eating caviar at the same time that the supply of Russian caviar shrinks. What would be the most likely effect of these events on the price and quantity of caviar sold?
A. Price fell and the effect on the quantity of caviar sold is ambiguous. B. Price fell and quantity sold rise. C. Price rose and the effect on the quantity of caviar sold is ambiguous. D. Price rose and quantity sold fell.