The political business cycle refers to the phenomenon that just before elections, politicians enact ________ policies. After the elections, the bad effects of these policies (for example, ________ ) have to be counteracted with ________ policies
A) expansionary; higher unemployment; contractionary
B) expansionary; a higher inflation rate; contractionary
C) contractionary; higher unemployment; expansionary
D) contractionary; a higher inflation rate; expansionary
B
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If European economies experience strong economic growth, U.S. net exports will
a. increase and AD will shift rightward. b. increase and AD will shift leftward. c. decrease and AD will shift leftward. d. decrease and AD will shift rightward.
The term "business cycle" most closely refers to the
A) fluctuating profits of firms. B) fiscal year. C) accounting period used by firms. D) alternating periods of expansions and recessions.
Which of the following is true of the per se rule?
a. The per se rule was used by U.S. courts from 1914 until the 1920s. b. The per se rule had the effect of making antitrust policy more liberal. c. According to the per se rule, activities that were potentially monopolizing tactics were illegal. d. The per se rule did not allow the mere existence of anti-competitive activities to be sufficient evidence for a guilty verdict. e. The per se rule was revived by Bush administration.
If the nominal interest rate is 5 percent and the rate of inflation is 9 percent, then the real interest rate is
a. -4 percent. b. -0.44 percent. c. 4 percent. d. 14 percent.