In the early 1980s, the government used fiscal policy to fight a recession by ______.
a. increasing tax rates
b. lowering tax rates
c. limiting government spending
d. suspending unemployment benefits
b. lowering tax rates
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The reduction in world poverty from 1990 to 2014 was due almost entirely to the decrease in poverty in
A. Mali. B. China. C. Canada. D. Ethiopia.
Curly just graduated from State U and has three job offers: teaching at a prestigious private high school nine months a year with summers off, working forty hours a week at a bank in a small city, and working more than sixty hours a week for a high-powered investment firm in New York. The annual salary for each of these offers is probably:
A. lowest at the high school, in the middle at the investment firm, and highest at the bank. B. lowest at the bank, in the middle at the investment firm, and highest at the high school. C. lowest at the investment firm, in the middle at the bank, and highest at the high school. D. lowest at the high school, in the middle at the bank, and highest at the investment firm.
According to the quantity theory of money, a 10 percent increase in the money supply leads to a 10 percent increase in:
A. velocity. B. unemployment. C. the price level. D. real GDP.
DSGE models are
A. similar to RBC models, but government spending shocks play a major role. B. similar to Keynesian models except in the long run. C. similar to RBC models but allow for shocks other than productivity shocks. D. similar to Keynesian models except in the short run.