Democrats often argue in favor of what to push the economy toward economic recovery, as they did during the recession that began in 2008?
A. Tax cuts
B. Increase government spending
C. Decrease government spending
D. Encourage the public to save more
B. Increase government spending
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________ policy changes are made through the legislative process, while ________ policy changes are made by the Federal Open Market Committee.
A. monetary; fiscal B. monetary; international C. fiscal; monetary D. fiscal; international
How does a voting structure that relies on unanimity for an action guarantee that no one will be adversely affected? Why isn't this type of decision making used more frequently?
An external BENEFIT occurs when
A. some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party. B. the production or consumption of some good or service inflicts costs on a third party without compensation. C. private costs exceed social costs. D. private benefits exceed private benefits.
According to Friedman and Phelps, which of the following statements is a correct characterization of unemployment and inflation in the United States since the 1950s?
A. A trade-off between inflation and unemployment as pictured in the Phillips curve existed over the entire time period. B. There is no clear relationship between unemployment and inflation. C. A trade-off between inflation and unemployment as pictured in the Phillips curve existed in the 1970s and 1980s, but not over the entire period. D. The relationship between inflation and unemployment is very different from the Phillips curve. A positive relationship is evident rather than an inverse relationship.