After the 2008 expansionary policy, unemployment remained higher than desired and output was much lower than desired.
Answer the following statement true (T) or false (F)
True
It took more years to reduce the unemployment rate compared to the typical recession. Fiscal policy was less effective than expected.
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A positive externality exists when
A. marginal social costs are less than marginal private costs. B. marginal social costs are greater than marginal private costs. C. marginal social benefits are less than marginal private benefits. D. marginal social benefits are greater than marginal private benefits. E. a and d
Using economic analysis to help understand world issues
a. assumes that all decision makers use detailed economic analysis b. highlights the role of choice when resources are scarce c. has unlimited application d. is not appropriate because reality is too complex for economic modeling e. typically enables one nation to gain only when another nation loses
Which of the following observations is true?
a. State governments are the shareholders of the Fed. b. The Fed chairman is appointed for a ten year term. c. FOMC decisions largely determine short-term interest rates. d. Member banks proportionately share all of Federal Reserve's profits.
Refer to the above diagram. Discretionary fiscal policy designed to slow the economy is illustrated by:
A. the shift of curve T1 to T2. B. a movement from a to c along curve T2. C. the shift of curve T2 to T1. D. a movement from d to b along curve T1.