The Ricardian Equivalence says
A) whatever the level of government expenses, consumption is the same.
B) whatever the timing of taxes, consumption is the same.
C) higher government expenses reduce consumption.
D) an increase in current consumption has to lead to a decrease in future consumption.
B
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According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
A) increases in the price level result in lower real balances. B) higher current output results in higher desired investment. C) higher prices result in higher levels of spending as consumers attempt to stay ahead of inflation. D) businesses have difficulty in distinguishing relative price increases from general price increases.
Exclusions from GDP measurement of such items as the value of housework and leisure seriously undermine the usefulness of GDP as an indicator of the economy's performance
Indicate whether the statement is true or false
FOMC voting rights a. are given to all twelve regional bank presidents. b. rotate among the twelve regional bank presidents
c. rotate among the twelve regional bank presidents, except the president of the New York Fed, who always gets a vote. d. are all given to the president of the New York Fed, since all of the Fed's bond sales and purchases are conducted at the New York Fed trading desk.
GDP is an imperfect measure of well-being because
a. it does not measure standards of living. b. it does not include household production. c. it ignores many of the costs of production. d. it excludes many goods produced within markets. e. both b and c.