Which of the following is not a weakness of fiscal policy as a tool of economic stabilization?
a. It is ineffective in dealing with stagflation
b. Its correct implementation depends on an accurate estimate of potential output.
c. It is subject to lags.
d. It affects only aggregate demand but does not have any impact on aggregate supply.
e. Households may not respond to changes they perceive as permanent.
e
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The public debt is
A) an excess of government spending over government revenues during a given time period. B) all federal government debt irrespective of who owns it. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) the total value of all outstanding federal government securities.
In the above figure, an innovation that increases the demand for high-skilled workers and decreases the demand for low-skilled workers will
A) reduce the amount by which WH exceeds WL. B) increase the amount by which WH exceeds WL. C) shift the SH curve leftward. D) shift the SL curve rightward.
Which of the following theories fails to explain persistent unemployment?
A) classical theory B) Friedman and Phelps fooling theory C) new Keynesian theory D) Both A and B are correct.
Which of the following groups were least likely to support restrictions on immigration?
a. Organizations like the Ku Klux Klan. b. Unionized labor. c. Employers. d. The south.