How have government policies and programs affected the volatility of the business cycle in the United States since 1950? Explain and provide at least two specific examples of policies or programs that may have had an impact
What will be an ideal response?
Government programs like unemployment insurance and Social Security have helped to shorten recessions since they provide additional income to individuals who might not otherwise be able to continue consumption spending. Since the Great Depression the federal government has also become more actively committed to maintaining low unemployment, which may have reduced the severity of recessions and prolonged expansions.
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Indicate whether the statement is true or false
The demand for dollars in the foreign exchange market will increase (so that the demand curve shifts rightward) if
A) the U.S. interest rate differential falls. B) the expected future exchange rate falls. C) the exchange rate for the dollar falls. D) None of the above answers is correct.
Sales taxes generate nearly 50% of the tax revenue for state and local governments
a. True b. False Indicate whether the statement is true or false
Which component of federal spending is included in GDP?
A. net exports B. transfer payments C. government purchases D. capital supply