Other things being equal a recession is likely to
A. have no effect on federal receipts or outlays.
B. increase federal outlays but have no effect on federal receipts.
C. decrease both federal outlays and receipts.
D. increase federal outlays and reduce federal receipts.
D. increase federal outlays and reduce federal receipts.
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When firms form a cartel in an oligopoly market, the total output is always the same as if the market were perfectly competitive
a. True b. False Indicate whether the statement is true or false
If inflation is much higher than originally anticipated, ________ are made better off and ________ are made worse off
a. banks that had made fixed interest rate loans; people that had borrowed fixed interest rate loans. b. people that had borrowed fixed interest rate loans; banks that had made fixed interest rate loans. c. retired people living on a fixed income; people that had borrowed fixed interest rate loans. d. people that had deposited their savings at fixed interest; banks that had taken deposits at fixed interest.
It is sometimes claimed that garbage collectors are paid more than elementary school teachers. If this is true, one reason might be
a. the difference in working conditions b. that school teachers are usually women c. that the supply of teachers is small d. that the demand for teachers is small e. that the market does not value teachers
Is the monetary policy reaction curve applicable only to central banks that have an explicit inflation target? Explain.
What will be an ideal response?