If the government cuts taxes ________
A) disposable income falls
B) planned expenditures rise
C) the IS curve shifts to the left
D) all of the above
E) none of the above
B
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The largest major change in the U.S. labor force participation rate during the last few decades has been
A) the increase in the number of illegal immigrants in the United States. B) the decrease in the number of working women. C) the number of prisoners dropping out of the labor force. D) the increase in the number of working women.
Given that all countries have the same Cobb-Douglas production function, i.e. Y/N = (K/N)b, a ten-fold difference in per capita income requires a difference in capital per capita by a factor of
A) 10. B) 10b. C) 101/b. D) b.
Which of the following individuals are considered officially unemployed?
a. a discouraged worker b. an individual who quits his job to raise a child c. an individual who is not looking for a job because he works in the underground economy d. None of the above
When actual output equals potential output and the inflation rate is equal to the expected rate of inflation, the economy is said to be in ________ equilibrium.
A. long-run B. recessionary C. short-run D. expansionary