One of the potential upsides of contractionary fiscal policy is a reduction in
A. tax revenues.
B. unemployment.
C. output.
D. payments on the national debt.
Answer: D
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According to Okun's Law, ________ tends to decline when the growth rate of real GDP is ________
A) inflation rate; low B) inflation rate; high C) unemployment rate; high D) unemployment; low
Since the mid-1980s, Federal Reserve policies have often been described as attempting
A) accelerated takeoffs. B) sustained growth. C) stalling tactics. D) soft landings.
The issue of bonds in corporate financing
A. is cheaper than stocks in the long run to the issuer. B. is riskier than stocks to the issuer. C. commits the issuer to make fixed annual payments even if profits are negative. D. All of these responses are correct.
Which statement is true?
A. The United States has a larger national output than any other country in the world. B. We have had recessions about every three years since World War II. C. There were no recessions while Ronald Reagan was president. D. None of the statements are true.