Which of the following is not an automatic stabilizer:
a. Business profits taxes.
b. Welfare payments.
c. Unemployment compensation.
d. All of the above are examples of automatic stabilizers.
.D
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Suppose the economy's production function is Y = A(300N – N2). The marginal product of labor is MPN = A(300 - 2N). Suppose that A = 10. The supply of labor is NS = 0.05w + 0.005G
(a) If G is 26,000, what are the real wage, employment, and output? (b) If G rises to 26,400, what are the real wage, employment, and output? (c) If G falls to 25,600, what are the real wage, employment, and output? (d) In cases (b) and (c), what is the government purchases multiplier; that is, what is the change in output divided by the change in government purchases?
"Reagonomics" was consistent with supply-side economics except for the fact that it
a. pushed for lower money growth. b. called for higher total government spending. c. pushed for tax cuts. d. pushed for reductions in nonmilitary government spending.
Rivalry among firms would tend to be high if
a. Firms are located further from each other b. Firms are located close to one another c. There is only one firm in the market d. None of the above
The general schooling model predicts that schooling increases
A. as both ability and the discount rates increase. B. as both ability and the discount rate decrease. C. as ability increase but as the discount rate decreases. D. as ability decreases but as the discount rate increases. E. when ability is held constant and the discount rate increases.