Fiscal policy would be more effective if:
A. the government could change taxes and expenditures rapidly.
B. potential income was unknown.
C. the size of the government debt didn't matter.
D. crowding out occurred more often.
Answer: A
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The labor force includes individuals who are:
I. Employed II. Unemployed III. Discouraged workers A) Both I and III B) I only C) Both I and II D) All I, II and III
Part of the spending on the Doyle Drive project in northern California came from the American Reinvestment and Recovery Act, which is an example of ________ aimed at increasing real GDP and employment
A) an automatic stabilizer B) a transfer payment C) discretionary fiscal policy D) contractionary fiscal policy
The saving function shows the relationship between planned real saving and
A) real wealth. B) real disposable income. C) the average propensity to save. D) the marginal propensity to save.
In the open-economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars
a. supplied for the purpose of selling assets domestically. b. supplied for the purpose of buying foreign assets. c. demanded for the purpose of buying U.S. net exports of goods and services. d. demanded for the purpose of importing foreign goods and services.