Which of the following statements about the tax cut enacted in 1981 is correct?
a. The tax cut caused the recession of 1982
b. The tax cut and the recession of 1982 combined to produce one of the largest peace-time deficits ever experienced up to that time.
c. The tax cut stimulated a large increase in economic activity and led directly to the balanced budget of 1982.
d. The tax cut was opposed by supply-side economists.
e. The tax cut was favored by Congress but opposed by the President and passed over his veto.
b
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The gravity model offers a logical explanation for the fact that
A) trade between Asia and the U.S. has grown faster than NAFTA trade. B) trade in services has grown faster than trade in goods. C) trade in manufactures has grown faster than in agricultural products. D) Intra-European Union trade exceeds international trade by the European Union. E) the U.S. trades more with Western Europe than it does with Canada.
Wearing a suit to a job interview is an example of a:
A. positive signal. B. negative signal. C. positive screen. D. negative screen.
The currency value of Agraria is set by government decree. Which of the following happens when the government alters the exchange rate so that its currency can buy more units of foreign currency?
a. Reflation b. Devaluation c. Appreciation d. Revaluation
Which of the following is a major drawback of the European Monetary Union?
A. Its inability to use monetary policies to address a recession that affects some member countries but not others B. Its inability to agree to a target for the euro area inflation rate C. Its inability to raise efficiency in production, thus lowering aggregate output of the member nations D. Its inability to bring down the transaction costs of trade between member nations