Currency devaluations hurt consumers because they make imports ________ expensive in the _____________ currency
a. Less; domestic
b. Less; foreign
c. More; domestic
d. More; foreign
c
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What impact do you think that the movement of women from working in the household to working in the market has had on GDP? Why? Do you think that this points to a problem with GDP?
What will be an ideal response?
If the consumption function is given by C = 200 + 0.6YD, then an increase in taxes of 50 units will cause the IS schedule to
a. shift to the right by 75 units.. b. shift to the left by 50 units. c. shift to the left by 75 units. d. shift to the left by 125.
Fiscal policy during periods of relatively low unemployment and low inflation have
A) little effect due to time lags and the crowding-out effect. B) significant effect due to the timely intervention of the president and congress. C) significant effect because the changes in fiscal policy gives investors confidence in the economy. D) little effect because the global market makes up fifty percent of aggregate spending.
Why is there a difference in the pay received by workers belonging to the same labor market?