A constitutional amendment is passed that requires the government to have an annually balanced budget in the sense that changes in spending should be matched by equivalent changes in taxes. Should the government desire to increase real GDP by $25 billion and meet the provisions of the law, itÂ
A. could increase spending by $25 billion and reduce taxes by $25 billion.
B. cannot possibly reach its objective without breaking the law.
C. could increase spending by $30 billion and increase taxes by $25 billion.
D. could increase spending by $25 billion and increase taxes by $25 billion.
Answer: D
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The beginnings of the New York Stock Exchange can be traced back to a small group of men who bought and sold stock in New York in
A. 1792. B. 1866. C. 1892. D. 1929.
A government subsidy is typically used
A) to correct a negative externality. B) to provide a government-inhibited good. C) to reduce inflation. D) to correct a positive externality.
Which of the following markets are competitive enough to be treated as perfectly competitive?
A all of the above B Agricultural markets C Copper D The U.S. airline industry E Coal, iron, tin and lumber
Refer to the following model
yt= 
0+ 
0st+ 1st-1+ 2st-2+ 3st-3 + ut
This is an example of a(n):
A. infinite distributed lag model.
B. finite distributed lag model of order 1.
C. finite distributed lag model of order 2.
D. finite distributed lag model of order 3.