Discretionary fiscal policy is best defined as:
a. the deliberate change in tax laws and government spending to change equilibrium income.
b. the deliberate manipulation of the money supply to expand the economy.
c. the arbitrary fluctuation in tax laws and budget requirements.
d. the automatic change in certain fiscal instruments when real GDP changes.
e. the policy action taken by the Congress to reduce the federal budget deficit.
a
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Social Security expenditures in the U.S. for 2006 made up approximately what percent of GDP?
a. 5 percent b. 12 percent c. 50 percent d. 75 percent e. 1 percent
Consider a simple linear regression model, wage = 
+
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Daily Output of Russia and Panama?RussiaPanamaGloves 40240Hats120180
Refer to Table 18.1. The opportunity cost of a hat in Russia is:
A. 1/3 of a glove. B. 1/2 of a glove. C. 2 gloves. D. 3 gloves.
A difference between the market and the public sector is that
A. competition exists only in the market sector. B. resources are only scarce for the market sector. C. only the public sector produces private goods. D. decision making is by majority rule in the public sector but not in the market sector.