During 2001-2011, what happened to the federal budget deficit?
What will be an ideal response?
It expanded and real government spending increased rapidly, indicating that fiscal policy was expansionary
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Of the approximate total population of 300 million people in America, about how many have incomes below the official poverty level?
A) approximately 13 million B) approximately 46 million C) approximately 73 million D) approximately 104 million
What assumptions lead to the conclusion that final products are distributed efficiently among households?
What will be an ideal response?
Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 6 percent, and there is a price shock of 2 percent. The current inflation rate is ________
A) 3 percent B) 0.2 percent C) 5 percent D) 1 percent E) none of the above
The economy is in equilibrium, TP = TE, and Real GDP is $4,555 billion. The MPC is 0.80, the multiplier is operative, and idle resources exist at each expenditure round. Government purchases rise by $10 billion. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, business firms ___________ the quantity of goods and services they produce, and Real GDP
__________ by __________. A) TE; downward; fall; increase; rises; $10 billion. B) TP; rightward; fall; decrease; falls; $50 billion C) TE; upward; fall; increase; rises; $50 billion D) TE; downward; rise; increase; rises, $50 billion