Which of the following is the largest component of the GDP?
A. consumption expenditures
B. government purchases
C. net exports
D. investment
Answer: A
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One reason why banks might increase their reserve-deposit ratio above the minimum level in times of economic uncertainty is that
A. banks are most profitable when new loans are issued. B. banks may have insufficient required reserves. C. banks are initiating quantitative easing D. banks may find only limited lending opportunities that seem sufficiently safe.
The above table shows answers given by people interviewed in a government survey of households. Which individual or individuals are considered marginally attached?
A) A B) B, C, and D C) A and D D) D
Assume the government reduces your welfare check by $1 for every $2 that you earn on the job while on welfare. How will this tax affect your labor supply decisions? What is the implicit tax rate of such a policy?
What will be an ideal response?
In real business cycle models, business cycles are caused by ______, while in new Keynesian model, business cycles are caused by ________
a. aggregate demand; aggregate demand b. aggregate demand; aggregate supply. c. aggregate supply; aggregate demand. d. fiscal policy; monetary policy