The proportion of the U.S. population below the poverty line
A. rises with upturns of the business cycle.
B. has declined, though somewhat erratically, over the past 40 years.
C. has been virtually eliminated by a vigorous "War on Poverty."
D. covers roughly 20% of the same people year after year.
B. has declined, though somewhat erratically, over the past 40 years.
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The size of the expenditure multiplier is influenced by
i. the marginal propensity to consume. ii. autonomous spending. iii. the marginal tax rate. A) i only B) ii only C) iii only D) i and iii E) ii and iii
Describe the main explanations for the downward rigidity of wages in the modern macroeconomy. Evaluate their probability of being correct and important
According to the Austrian view of the business cycle, if expansionary monetary policy pushes the interest rate to an artificially low level, the result will be
a. a long-term increase in output and employment. b. malinvestment and an unsustainable economic boom, followed by a recession. c. an increase in demand stimulus, that will expand employment and lead to a rapid increase in long-term economic growth. d. a temporary increase in the inflation rate, followed by a sustainable expansion in output and employment.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.If the players in the figure shown act in their own self-interest, then we know that Sarah will earn utility of:
A. 7. B. 6. C. 10. D. 15.