Activist macroeconomists believe that fiscal and monetary policy ______.
a. have little or no function in trying to influence the economy
b. can stimulate or dampen the economy in the short-run
c. are only effective tools when applied over the long-run
d. are only effective when they are used in ways the public was not expecting
b. can stimulate or dampen the economy in the short-run
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In September 2014, the labor force participation rate fell from 62.8 percent to 62.7 percent. This change could have been caused by
A) unemployed workers giving up looking for a job. B) full-time workers becoming part-time workers. C) unemployed workers getting full-time jobs. D) discouraged workers starting to look for jobs again.
In the case of a positive externality, in order to achieve efficiency the government must set the _________________ equal to the marginal ____________________.
A. tax; external costs B. tax; external benefits C. subsidy; external costs D. subsidy; external benefits E. subsidy; private costs
The practice of factoring involves
A) the syndication of underwriting large security issues. B) the selling of accounts receivable at a discount in return for cash. C) breaking up large mutual funds into smaller funds. D) spreading the risk of insurance through reinsurance.
The focus of the short-run macro model is on the role of
a. spending in explaining economic fluctuations b. labor in explaining economic fluctuations c. financial markets in explaining economic fluctuations d. output in explaining economic fluctuations e. resources in explaining economic fluctuations.