Because of automatic stabilizers, _____
a. fiscal policy focuses on maintaining an annually balanced budget
b. planning discretionary fiscal measures to reduce economic fluctuations is easy
c. government budget deficits are zero if averaged out over the entire business cycle
d. policy makers should be concerned less with balancing the budget annually
e. government budget deficits are smaller during expansions and larger during contractions
e
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The price elasticity of demand for a specific model of a luxury car is likely to be
A) elastic. B) inelastic. C) 0. D) infinite.
If the area between the line of equality and the Lorenz curve is 1,250, and the entire area beneath the line of equality is 5,000, the Gini ratio is
A) 0.25. B) 4.00. C) 0.33. D) 0.80.
What are the defining features of Keynesian macroeconomics and what policies do Keynesian macroeconomists recommend?
What will be an ideal response?
Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?
a. 2 houses b. 3 houses c. 5 houses d. 8 houses