The goal of expansionary fiscal policy with respect to output is to:
A. increase spending and shift aggregate demand to the right in an effort to reach full employment output.
B. increase spending and aggregate demand to get back to an output level the government is comfortable with.
C. decrease government spending in an attempt to get the private economy back on track.
D. increase spending and shift aggregate demand to the left in an effort to reach full employment output.
A. increase spending and shift aggregate demand to the right in an effort to reach full employment output.
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Most of the goods produced in an economy are ________
A) private goods B) public goods C) club goods D) inferior goods
The official poverty level is based on pretax income including cash. Which of the following statements is correct regarding this official specification of poverty?
A) This is a good definition of poverty since it is made up of the income from productive resources. B) This is not a good definition of poverty because our tax structure consists of different tax brackets based on income. C) This is not a good definition of poverty because it does not include in-kind subsidies. D) This is a good definition of poverty because it is easy to measure.
Which of the following is true of an inflationary gap? a. It results in an inflationary increase in the price level of an economy
b. It occurs when an economy's aggregate expenditures are lower than its actual output. c. It results in an increase in the stock of inventories. d. It results in a decrease in input prices.
Which of the following does not explain the "beauty premium" differences in wages?
a. Better-looking people are preferred by customers; thus, employers will pay them higher wages than average-looking people. b. Beauty may be an indirect measure of other abilities that employers value. c. Average-looking people are preferred by customers; thus, employers will pay them higher wages than better-looking people. d. Employers discriminate in favor of better-looking people.