When President Obama took office in January 2009, he pledged to pursue an expansionary fiscal policy to try to pull the economy out of the recession. The next month, Congress passed the American Recovery and Reinvestment Act of 2009, an $840 billion
package of spending increases and tax cuts that was
A) the largest fiscal policy action in U.S. history.
B) second in size only to the fiscal policy action taken during the Great Depression.
C) small in comparison to the actions taken during the recession of 1974-1975.
D) roughly equal to the spending increases and tax cuts implemented during the recession of 1980-1982.
Answer: A
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In an economy, the number of potential workers is 60,000, the size of the labor force is 45,000, and the number of employed workers is 39,000. Calculate the unemployment rate and labor force participation rate in the country
What will be an ideal response?
A single-price monopolist will produce at the point where
A) MR = 0. B) MR = P. C) MR = MC. D) P = MC.
Which of the following is NOT a mechanism the HPAE used to share wealth across all layers of society?
A) significant investments in rural infrastructure B) free public education C) tax policies that strongly redistributed income from rich to poor D) land reform
Decreases in the real interest rate will result in a(n):
A. decrease in net exports because it will lead to an appreciation of the dollar. B. decrease in net exports because it will lead to a depreciation of the dollar. C. increase in net exports because it will lead to an appreciation of the dollar. D. increase in net exports because it will lead to a depreciation of the dollar.