Which of the following is a way the government can stimulate saving?
A. Decrease interest rates
B. Increase taxes
C. Offering tax incentives for retirement accounts
D. There is nothing the government can do to stimulate saving.
C. Offering tax incentives for retirement accounts
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The price level in the economy between 2014 and 2015 rose from 100 to 105. Between 2015 and 2016, the price level rose from 105 to 110.25. How does the short-run Phillips curve predict the unemployment rate will change as a result?
A) The unemployment rate will decrease since inflation decreased. B) The unemployment rate would not change since there is no change in the rate of inflation. C) The unemployment rate will increase since inflation increased. D) The unemployment rate will decrease since inflation increased.
The employment ratio is always ________ than labor force participation, because only the latter ________
A) larger; omits discouraged workers B) smaller; includes the unemployed C) smaller; omits people too young to work D) larger; includes people looking for work
An unanticipated decline in investment demand within the new classical model will cause
a. the price level to fall with no effect on output. b. output to fall with no effect on the price level. c. both the price level and output to fall. d. no change in either the level of price or output.
If a payment received two years from now has a present value of $200 and the annual interest rate on the payment is 5 percent, then the future value of the payment is:
A. $220.50. B. $210.50. C. $190.50. D. $171.50.