Vouchers given to consumers
A) increase the demand for a good.
B) decrease the demand for a good.
C) increase the supply of a good.
D) decrease the supply of a good.
E) increase both the demand for the good and the supply of the good.
A
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The United States' economy would be operating at full employment with labor unemployment rate of ___ percent and a capacity utilization rate of _____ percent.
A. 5; 95 B. 5; 85 C. 10; 95 D. 10; 85
To compare the real price of gas in 1975 to the real price in 2013, we need to know
A) the two prices in both years and the inflation rate in 2013. B) just the two nominal prices in both years. C) the two prices in both years and the two interest rates in both years. D) the two prices in both years and the CPI in both years. E) the two prices in both years and the two inflation rates in both years.
For this question, use the Keynesian IS—LM model with flexible exchange rates. Eastland's main trading partner is Westland. Suppose Westland undertakes an expansionary monetary policy
(a) What is the effect of Westland's expansionary monetary policy on Eastland's real exchange rate in the short run, assuming no change in Eastland's policies? (b) What is the effect of Westland's expansionary monetary policy on Eastland's real exchange rate in the long run, assuming no change in Eastland's policies? (c) What is the effect of Westland's expansionary monetary policy on Eastland's nominal exchange rate in the short run and in the long run?
Automatic stabilizers are government programs that:
a. exaggerate the ups and downs in aggregate demand without legislative action. b. bring expenditures and revenues automatically into balance without legislative action. c. shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion. d. increase tax collections automatically during a recession.