The nonlabor income of households will increase, causing consumption to increase and labor supply to decrease, if the government
A. increases the personal income tax.
B. implements contractionary fiscal policy.
C. decreases transfer payments.
D. decreases the corporate profits tax.
Answer: D
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The natural employment surplus is
A) G + T. B) Y - tYN. C) tYN - G. D) YN + G + tYN.
When did the Fed fail to engage in a pre-emptive strike to keep the economy at or near the natural rate of unemployment?
A) 1994 B) 1998 C) 2001 D) None of the above. The Fed acted in each of these years.
Define the following terms and explain their importance to the study of economics: a. Antitrust policy b. Economies of scale c. Economies of scope
What will be an ideal response?
The Stability and Growth Pact (SGP) of 1997 proposed:
A) only a budgetary surveillance process. B) no sanctions for "excessive deficit procedure." C) signing mandatory pledges to uphold the criteria. D) a budgetary surveillance process and sanctions for "excessive deficit procedure."