Suppose most economists agree that the target rate of unemployment is between 4 and 7 percent. If the actual unemployment rate is 11 percent, then most economists would agree that:
A. contractionary monetary and fiscal policies are appropriate.
B. both expansionary and contractionary policies are appropriate.
C. expansionary monetary and fiscal policies are appropriate.
D. neither expansionary nor contractionary policies are appropriate.
Answer: C
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Federal tax loopholes in personal income tax provide benefits only to very high-income people.
Answer the following statement true (T) or false (F)
The process in which a cycle of falling asset prices and falling prices of goods and services can increase the severity of an economic downturn is called:
A) financial crisis B) bank run C) sovereign debt crisis D) debt-deflation process
What is one reason firms might lobby to prevent entry into their market?
A) The long run equilibrium might be characterized by P = MC = ATC. B) The long run equilibrium might be characterized by P = MC < ATC. C) The long run equilibrium might be characterized by P > MC = ATC. D) The long run equilibrium might be characterized by P = MC > ATC.
Another term often used to refer to family wealth is:
A. Income B. Net worth C. Salary and wages D. Spending