Refer to the above figures. Which panel(s) represent the effect of an increase in the price level?
A. Panel A only
B. Panel D only
C. Panels A and C only
D. none of the panels
Answer: D
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As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are
A) higher. B) the same. C) lower. D) higher and more variable.
Seasonal credit provided by the Fed is not as common as it used to be because:
A. there are fewer banks in seasonal areas. B. seasonal credit has been replaced by secondary credit. C. other sources for long-term loans have developed for banks in seasonal areas. D. seasonal credit is being replaced by primary credit.
The payroll tax appears to be a proportional tax. In reality, it is
A. highly progressive. B. actually proportional. C. highly regressive. D. regressive on low-income persons and progressive on high-income persons.
The government wants to increase its spending to stimulate the economy. Taking into account direct expenditure offset effects, what is its best spending option?
A. a new fighter jet for the military B. providing textbooks for college students C. constructing more low income housing D. expanding the school lunch program