In 2009, Congress passed a bill that involved government spending increases and tax cuts with the purpose of stimulating the US economy. This policy is an example of
a. an automatic stabilizer
b. contractionary fiscal policy
c. expansionary fiscal policy
d. expansionary monetary policy.
Answer: c. expansionary fiscal policy
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In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities
A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. C) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. D) aggregate supply would shift to SRAS1 and then return to SRAS0.
In a market with ________, one side of the market has private information that is relevant for the other side
A) asymmetric information B) perfect competition C) monopolistic competition D) positive externalities
Provide a short definition of sustainable development
What will be an ideal response?
When future labor income falls in a small open economy, it causes the current account to ________ and investment to ________
A) fall; rise B) rise; remain unchanged C) fall; remain unchanged D) rise; rise