The money for Social Security payments to current retirees comes from
A. payroll taxes collected from those retirees when they were working.
B. income taxes collected from the current working population.
C. payroll taxes collected from the current working population.
D. only the interest earned now by the government on the invested Social Security trust fund.
Answer: C
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The difference between a Nash equilibrium and a subgame-perfect equilibrium is:
a. the former requires rational play both on and off the equilibrium path but the latter requires rational play only on the equilibrium path. b. the former requires rational play only on the equilibrium path but the latter requires rational play both on and off the equilibrium path. c. Nash equilibria are a subset of the subgame-perfect equilibria. d. nothing; they are synonyms.
The GDP gap is the difference between:
a. full-employment real GDP and real GDP chain price index. b. unemployment rate and real GDP chain price index. c. actual real GDP and full-employment real GDP. d. frictional unemployment and actual real GDP.
The demand for reserves depends on income and the price level
a. True b. False Indicate whether the statement is true or false
The name given to government programs implemented to prevent or shorten recessions and counteract inflation is
A. supply-side economics. B. contractionary policy. C. monetary policy. D. stabilization policy.