In January 2009, the President submitted a bill to Congress that was designed to stimulate the economy and increase employment. The legislation was passed in March 2009, and the spending occurred from June 2009 to September 2010. Consequently
A. the full impact of the bill would be felt by the end of September 2010.
B. the full impact of the bill would be felt by March 2009 because people anticipated the effects of the increased spending.
C. the economy should have been at full employment by December 2009.
D. the full effect of the spending would be felt some time after September 2010 because the full multiplier effects could not be felt until all the increase in spending took place.
Answer: D
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If both the supply and demand curves shift to the left, then we can conclude that there will be
A. an increase in the equilibrium quantity sold. B. a decrease in the equilibrium quantity sold. C. an increase in the equilibrium price. D. a decrease in the equilibrium price.
In the case of a normal good,
A) demand curves always slope downward. B) the income effect and substitution effect are in the same direction. C) the Engel curve slopes upward. D) All of the above.
A tax levied on the sellers of a good shifts the
a. supply curve upward (or to the left). b. supply curve downward (or to the right). c. demand curve upward (or to the right). d. demand curve downward (or to the left).
An example of a public policy response to a monopoly is:
A. doing nothing. B. public ownership. C. antitrust laws. D. All of these are examples.