In most developed economies, unemployment insurance benefits
a) are nonexistent
b) paid for by insurance companies
c) initially replace 100% of lost wages
d) replace an increasing percentage of lost earnings as the duration of unemployment becomes prolonged
e) become less generous as the duration of unemployment is prolonged
e) become less generous as the duration of unemployment is prolonged
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President Bush lowered income taxes for individuals in 2001. Explain how lower income taxes affect the aggregate demand curve
What will be an ideal response?
Which of the following statements about a price system is TRUE? I. Prices ration goods and services. II. Prices indicate relative scarcity
A) I only B) II only C) Both I and II D) Neither I nor II
Explain why the Fed must choose between targeting the money supply or targeting interest rates when money demand increases
Fiscal policy analysis indicates that large tax increases during a severe recession will result in
a. an increase in the incentive to earn and the maintenance of a balanced federal budget. b. higher tax revenues and an expansion in government spending. c. smaller budget deficits, which will speed an economic recovery. d. a reduction in aggregate demand and a worsening of the recession.