If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy?
A) an increase in the money supply and a decrease in interest rates
B) a decrease in government purchases
C) a decrease in taxes
D) a decrease in oil prices
Answer: C
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Which of the following changes aggregate supply and shifts the aggregate supply curve? i. change in the price level ii. change in potential GDP iii. change in the money wage rate
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30%. If her house gets broken into, she faces a property loss of $10,000, otherwise she gets to keep her $100,000 . What is her expected loss?
a. $3000 b. $10,000 c. $30,000 d. $100,000
When the value of a currency decreases relative to other currencies, we say that a currency experiences:
A. exchange-rate appreciation. B. exchange-rate depreciation. C. interest-rate appreciation. D. interest-rate depreciation.
Which of the following is not a valid argument against labor market deregulation?
a) deregulation produces income inequality b) deregulation reduces wages c) deregulation leads to crime d) active labor market spending may be equally or more effective at reducing unemployment than deregulation e) deregulation restricts employer choices