Which of the following is consistent with an active approach to policy?
a. The natural rate of unemployment being uncertain
b. Wages and prices being relatively quick to adjust
c. The short-run aggregate supply curve being slow to shift in the presence of a recessionary gap
d. The size of the multiplier being irrelevant
e. The aggregate demand curve being slow to shift in the presence of a recessionary gap
c
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Two players are playing a game. Player 1 is given $100 and is asked to offer a certain share of the money to Player 2. Player 2 can then choose to accept or reject the offer
If he accepts the offer, the money will be split between the two players in the ratio as decided by Player 1. If he rejects the offer, neither of the players will get anything. a) Assume that both players prefer more money to less. How would Player 1 choose his optimal strategy in this case? b) If Player 2 prefers fairness to money, how will his decision change?
When government expenditures in a given year exceed tax receipts, there exists
A. a budget surplus. B. a budget deficit. C. public revenue. D. full-employment taxation.
During 1959 through 2010, the percent of poor families headed by an elderly person
a. rose. b. steadily declined. c. remained virtually unchanged. d. steadily increased until 1980 when it began to decline.
What particular characteristic do private goods and club goods have in common?