Which of the following is not a prediction of the theory on baseball caps and cheating?
A) More people will wear baseball caps on test days than on lecture days.
B) More people will wear baseball caps for multiple choice tests than for essay tests.
C) More people will wear baseball caps when students sit close to each other in class and are taking a test than when students sit far apart from each other and are taking a test.
D) b and c
E) none of the above
E
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An example of an automatic stabilizer is
A) unemployment compensation. B) a newly enacted surtax to slow down an overheated economy. C) a horizontal aggregate supply curve. D) a change in the marginal tax rates.
Oil producers expect that oil prices next year will be lower than oil prices this year. As a result, oil producers are most likely to
A) place more oil on the market this year, thus shifting the present supply curve of oil rightward. B) hold some oil off the market this year, thus shifting the present supply curve of oil leftward. C) place more oil on the market this year, thus increasing the quantity supplied of oil at lower but not higher prices. D) hold some oil off the market this year, thus decreasing the quantity supplied of oil at lower but not higher prices.
Stagflation" refers to
A. a simultaneous increase in output and the price level. B. a simultaneous reduction in output and the price level. C. an increase in the price level accompanied by decreases or leveling off in real output and employment. D. a decline in the price level accompanied by increases in real output and employment.
The government budget surplus equals
A) government purchases plus transfers. B) government receipts minus government outlays. C) government purchases minus net receipts. D) government purchases minus transfers.