A program to reduce inflation is likely to have higher costs if the sacrifice ratio is
a. high and the reduction is unexpected.
b. high and the reduction is expected.
c. low and the reduction is unexpected.
d. low and the reduction is expected.
a
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Countries in which the government does not regulate the labor market are likely to have ________ sacrifice ratio
A) an infinite B) a high C) a low D) a negative
In the circular flow model of the economy, the resource market is where
a. consumers purchase consumer goods and services b. firms purchase goods and services c. consumers supply goods and services d. firms purchase labor, land, and capital e. consumers purchase labor and capital
Answer the following statement(s) true (T) or false (F)
1.Monetary policy is often more effective in an recessionary gap than in an expansionary gap. 2.A major criticism of quantitative easing is that it could eventually lead to inflation. 3.The Fed has significant control over nonbank institutions that issue credit. 4.A major problem with implementing fiscal policy and monetary policy is that the increase in aggregate demand might happen at the wrong time. 5.In order to know how much to stimulate the economy, policy makers must know the size of the divider.
The national debt includes ______.
a. the debt of state governments b. projected Social Security costs c. the value of all outstanding bonds d. debt the government owes itself