Discretionary fiscal policy
A) may not have desired effects on real GDP because it leads to decreases in aggregate demand.
B) may not have desired effects on real GDP because of the time lags.
C) would have a larger effect on real GDP if the multiplier was smaller.
D) may not have desired effects on real GDP because it leads to increases in aggregate demand.
B
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The graph shows the labor market for apple pickers in Ohio. If the government sets a minimum wage of $5 an hour, ________ apple pickers are unemployed
A) 6,000 B) 8,000 C) 10,000 D) 14,000 E) more than 14,000
The hypothesis that people are nearly, but not fully rational, cannot possibly fully examine every available choice, and utilize simple rules of thumb in making decisions is known as the
A) irrationality hypothesis. B) ceteris paribus hypothesis. C) individual aggregation hypothesis. D) bounded rationality hypothesis.
As the reserve ratio increases, the money multiplier
A. increases. B. decreases. C. does not change. D. None of the above is correct..
Based on information provided in the textbook, which of the following statements is true regarding taxing millionaires and the budget deficit in 2012?
A) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget deficit would have been completely eliminated, and a budget surplus would have been incurred. B) If the government had taxed all income earners who earned more than $1 million a 50 percent income tax rate, the budget deficit would have been completely eliminated. C) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget deficit would have fallen but not been completely eliminated. D) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget would have been balanced.