During a recession, unemployment compensation payments increase without the need for any government action. This increase is an example of
A) discretionary monetary policy.
B) automatic monetary policy.
C) automatic fiscal policy.
D) discretionary fiscal policy.
E) government expenditure, but it is not an example of either discretionary or automatic policy.
C
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A 45-degree line on a graph with expenditures, E, on the vertical axis and production, Y, on the horizontal axis, represents
A) the line of disequilibrium levels of income. B) all possible equilibrium levels of production and expenditures. C) some of the equilibrium levels of production and expenditures. D) None of the above.
Which one of the following would be classified as employed?
a. a parent who works 50 to 60 hours per week caring for family members b. an construction worker vacationing in Florida who is on layoff due to bad weather conditions in his home state c. a 21-year-old full-time college student d. a 17-year-old high school student who works a newspaper route six hours per week
Alto and Saxon are two oligopolists that hold most of the market power in the bottled water industry. Which of the following actions shows that collusion is occurring?
a. Alto and Saxon agree to merge to increase their market power. b. Alto suffers a sales loss after Saxon lowers its prices. c. Saxon launches an advertising campaign against Alto. d. Alto and Saxon agree to mutually restrict production to drive up prices.
The official number of poor in the United States
A) is higher today than at any other time in our history. B) has risen steadily since 1981. C) was lowest in the late 1960s. D) is lowest today.