If the unemployment rate rises, which policies would both be appropriate to reduce it?
a. increase taxes, increase government spending
b. increase taxes, decrease government spending
c. decrease taxes, increase government spending
d. decrease taxes, decrease government spending
Answer: c. decrease taxes, increase government spending
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The Consumer Price Index (CPI) differs from a chain-weighted price index in that the CPI
A) compares the prices of all goods in one year to the prices of all goods in other years. B) measures the costs of a typical fixed basket of goods over time, while the chain-weighted index does not. C) requires calculation of GDP, while the chain-weighted index does not. D) allows for the goods consumed in an economy to change over time, while the chain-weighted index does not.
The most popular diagnosis of poverty is Flawed Character
Indicate whether the statement is true or false
Trade between industrial countries account for the majority of international trade
a. True b. False Indicate whether the statement is true or false
Assume you are spending your full budget and purchasing such amounts of X and Y that the marginal utility from the last units consumed is 40 and 20 utils respectively. Assume (a) the prices of X and Y are $8 and $4 respectively; (b) it takes 3 hours to
consume a unit of X and 1 hour to consume a unit of Y; and (c) your time is worth $2 per hour. You: A. should substitute X for Y until the marginal utility per hour is the same for both products. B. are consuming X and Y in the optimal amounts. C. should consume less of Y and more of X. D. should consume less of X and more of Y.