The long-run aggregate supply curve occurs at the level of real GDP consistent with
A. the natural rate of unemployment.
B. low levels of inflation.
C. no inflation.
D. individuals' tastes and preferences.
Answer: A
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After September 11, 2001, President George W. Bush believed in the need for a fiscal stimulus. The proper fiscal policy to reflect this could include a(n)
a. increase in taxes. b. reduction in transfer payments. c. increase in government purchases. d. All of the above are correct.
Which of the following groups has the highest poverty rate?
a. blacks b. Asians c. children (under age 18) d. female households, no spouse present
Which of the following is the most important contributor to human capital?
a. education b. effort c. chance d. physical strength
The principal way in which an economy self-corrects from an inflationary gap is through
A. deflation, which increases purchasing power. B. inflation, which reduces purchasing power. C. disinflation, which maintains purchasing power. D. price level decreases, which stimulate production.