Assume the economy faces high unemployment but stable prices. Which combination of government policies is most likely to reduce unemployment?
a. The purchase of government securities in the open market and an increase in taxes
b. The sale of government securities in the open market and a decrease in taxes
c. The sale of government securities in the open market and a decrease in government spending
d. The purchase of government securities in the open market and an increase in government spending
d. The purchase of government securities in the open market and an increase in government spending
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What is the difference between labor-saving technology and labor-complementary technology?
What will be an ideal response?
Wages typically vary among individuals for all of the following reasons, except one. Which is the exception?
a. differences in ability b. geographical differences in the cost of living c. differences in educational attainment d. differences in labor market experience e. differences in the prices of the goods produced by labor
The money market is in equilibrium when there is no excess supply of or excess demand for bonds
a. True b. False
If the United States government wants to eliminate an unfavorable balance of trade, it could
a. reduce tariffs b. encourage imports c. reduce quotas on imports d. depreciate the dollar e. increase taxes on exported goods