Which of the above diagrams illustrate(s) the effect of an increase in incomes on the market for secondhand clothing?
A. A only
B. B only
C. C only
D. B and C
Answer: B
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"Any additional increases in government spending should be for defense," is ________ statement about ________ policy.
A. positive; fiscal B. normative; monetary C. normative; fiscal D. positive; monetary
Why might the Federal Reserve intervene in foreign currency markets?
A) to ensure the safety of overseas investments for private investors B) to maintain a desired exchange rate for the dollar C) to ensure the safety of overseas investments for pension funds D) to ensure the safety of overseas investments for banks
When does the burden of a tax imposed on a good fall more heavily on sellers?
What will be an ideal response?
New Keynesian economists believe that
a. movements in unemployment can be explained by voluntary movements in and out of the labor market.. b. everyone who is not working is involuntary unemployed. c. labor markets clear in the long-run. d. the new classical model has merit, but recessions cannot be adequately explained in a model of with perfectly flexible prices and wages.