Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. The natural rate of unemployment occurs at
A. U0.
B. U1.
C. U2.
D. a level of zero unemployment.
Answer: B
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The purchase by a foreign government of an airplane produced in the United States is included in U.S
A) government purchases. B) investment expenditures. C) consumption expenditures. D) net exports.
Which of the following changes should make activist policy makers more confident in their capacity to make good policy recommendations?
A) structural change in the economy B) changes in multipliers C) a longer estimated lag for monetary policy D) none of the above
With what type of recession should discretionary fiscal policy be used with caution?
a. any recession b. smaller recessions c. larger recessions d. long recessions
When nations enter into currency unions, their fiscal affairs continue to be separate. The exception to this situation is whenever a confederation of states has a system:
A) whereby monetary policy is decided by consensus rather than centrally. B) of government subsidies for firms exporting outside the union. C) of fiscal mechanisms that permits interstate transfers. D) of common tax policies and regulatory rule.