Which of the following is not an effect of an agricultural price support?
A) a surplus
B) fewer exchanges
C) higher prices paid by consumers
D) government purchase and storage of surplus
E) higher-quality products
E
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Growth of real GDP per person is totally determined by the growth of average:
A. labor force participation and the share of income going to capital. B. labor force participation and the share of the population employed. C. labor productivity and the proportion of the population employed. D. labor productivity and the proportion of the population in the labor force.
If the U.S. trade deficit was reduced in a rush, what would be a possible result?
a. decreasing inflation and increasing unemployment b. increasing inflation and decreasing unemployment c. increasing inflation and increasing unemployment d. decreasing inflation and decreasing unemployment
When quantity demanded responds strongly to changes in price, demand is said to be
a. fluid. b. elastic. c. dynamic. d. highly variable.
As discussed in the Case in Point on the size of the fiscal multiplier, a study conducted by John Taylor on the effect of fiscal policy since the year 2000 suggests that
A) the multiplier effect of fiscal policy is much less than that for monetary policy. B) temporary fiscal policy financed through government borrowing implies a multiplier value between 0.8 and 1.5. C) fiscal policy has little effect on the economy and that the multiplier value is effectively zero. D) statistical models are inadequate to determine the multiplier and the multiplier value likely varies based on the state of the economy.