One of the potential economic problems associated with the extensive use of macropolicy to recover from the Great Recession is
A. the huge government deficits will cause increasing interest rates which could choke off the recovery.
B. the large amount of government spending for job creation could result in rapid and uncontrollable increases in wages.
C. the flood of money into the banks could cause excessive investment expenditures in the economy.
D. the tax rebates made available to consumers could cause uncontrollable increases in the price of housing.
A. the huge government deficits will cause increasing interest rates which could choke off the recovery.
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The labor market is in equilibrium whenever
A) the nominal wage rate is decreasing. B) the nominal wage rate is increasing. C) the nominal wage rate is not changing. D) the real wage rate is increasing. E) the quantity of labor demanded equals the quantity of labor supplied.
There are several important differences between the Fed and the European Central Bank (ECB). What are they?
What will be an ideal response?
In the Keynesian-cross model, if government purchases increase by 100, then planned expenditures ______ for any given level of income.
Fill in the blank(s) with the appropriate word(s).
Combinations to the left of the budget line are:
A. Unavailable and inefficient B. Unattainable and efficient C. Attainable and inefficient D. Attainable and efficient