If unemployment is the most significant problem in the economy, which of the following actions would be an appropriate fiscal policy response?
a. decrease taxes
b. decrease government purchases
c. decrease the federal deficit
d. all of the above
a
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According to this Application, the failure of including cell phones in a timely manner when calculating the CPI caused the telecommunications component of the price index
A) to become negative. B) to be biased upward. C) to be biased downward. D) to actually register no perceptible bias.
Assuming that professional and college football are substitutes, an increase in the ticket price for professional football, other things being equal, will:
a. increase the demand for college football tickets. b. decrease the demand for college football tickets. c. not change the demand for college football tickets. d. decrease the demand for professional football games.
Each of the following would increase the supply of U.S. dollars, shifting the supply curve for dollars to the right, EXCEPT:
A. an appreciation of the U.S. dollar relative to other currencies. B. an increase in U.S. real GDP. C. an increased preference for foreign-made goods. D. an increase in the real interest rate on foreign assets.
If planned investment is perfectly responsive to changes in the interest rate, the planned investment schedule
A) has a negative slope. B) is horizontal. C) is vertical. D) has a positive slope.