As discussed in the Case in Point on the size of the fiscal multiplier, a study conducted by Jonathan Parker on the effect of fiscal policy during recessions suggests that
A) the multiplier effect of fiscal policy is much less than that for monetary policy.
B) temporary fiscal policy financed through government borrowing implies a multiplier value between 0.8 and 1.5.
C) fiscal policy has little effect on the economy and that the multiplier value is effectively zero.
D) statistical models are inadequate to determine the multiplier and the multiplier value likely varies based on the state of the economy.
Ans: D) statistical models are inadequate to determine the multiplier and the multiplier value likely varies based on the state of the economy.
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In the United States, a reason for the increase of the labor force participation rate for women is that
A) an increase in wealth allowed men to retire early. B) more women pursued a college education and received higher wages upon graduation. C) fewer women married. D) there has been a decrease in jobs with flexible hours. E) improved Social Security benefits are available for women if they work.
A tax that causes the price that producers receive for a commodity to deviate from the buyer's price is
A. an unit tax. B. a compensated tax. C. an income tax. D. a price-distorting tax.
Which of the following statements best describes the effect of an increase in structural unemployment on an AD/AS diagram?
a. In an AD/AS diagram, an increase in structural unemployment will shift AS to the right. b. In an AD/AS diagram, an increase in structural unemployment will have no effect on AS or AD. c. In an AD/AS diagram, an increase in structural unemployment will shift AS to the left. d. In an AD/AS diagram, an increase in structural unemployment will shift AD to the left.
Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Atul can bottle and sell three cases per week. What is the maximum total output possible if Riva hires Atul?
a. 3 cases b. 4 cases c. 7 cases d. 11 cases