Which of the following would not act as an automatic stabilizer?
A) Unemployment insurance
B) Government purchases
C) Personal income taxes
D) Corporate income taxes
B
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If bananas were money, which of the following functions of money would be the most difficult for bananas to satisfy?
A) medium of exchange B) store of value C) standard of value D) serving as a commodity
Advances in medical practice have increased both expected lifespans and medical expenditures. What does the life-cycle hypothesis predict as the macroeconomic consequences?
What will be an ideal response?
In a small country, the adult population equals 5,000. There are 4,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals
A) 25 percent. B) 80 percent. C) 30 percent. D) an undetermined amount given the lack of information.
Classical economists and Keynesian economists respect each other but hold very different views about how to read the quantity theory of money. According to the classical view,
a. velocity is constant (Keynesians agree), which means changes in price will cause changes in price or quantity (Keynesians disagree) b. quantity is constant (Keynesians agree), which means changes in the money supply could cause either changes in velocity or changes in prices (Keynesians disagree) c. velocity and price are constant (Keynesians disagree) so that changes in the money supply cause changes in quantity (Keynesians disagree) d. velocity and quantity are constant (Keynesians disagree) so that changes in the money supply only cause changes in prices (Keynesian disagree) e. velocity is constant while quantity is variable (Keynesians disagree) so that changes in the money supply change both price and quantity (Keynesians disagree)