During the financial crisis of 2008-2010, the Fed
a. increased its purchases of securities and other financial assets and extended more loans, which expanded the monetary base.
b. increased its purchases of securities and other financial assets and extended more loans, which reduced the monetary base.
c. reduced its purchases of securities and other financial assets and extended fewer loans, which expanded the monetary base.
d. reduced its purchases of securities and other financial assets and extended fewer loans, which caused the monetary base to decline.
A
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In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be
A) more unequal. B) more equal. C) unchanged. D) More information is needed to determine how this change would affect the income distribution.
In the Spence education signaling model, what is the social value of education?
a. Employees improve their ability to perform on the job. b. Employers can use education as a screen to match talented employees with high-skill jobs. c. Employers can save the costs of on-the-job training, which is less efficient than a general education. d. It allows low-ability employees to apply for high-salary jobs.
A substantial revision of the income tax code that made business and personal tax returns much easier to complete would tend to cause which of the following changes in the labor market for accountants?
a. an increase in the demand for accountants b. an increase in the employment of accountants c. a decrease in the wage rate of accountants d. an increase in the number of students choosing to major in accounting
Assume that full-employment real GDP is Y = $1,200 billion, the current equilibrium real GDP is Y = $1,600 billion, and the MPC = 0.8. In order to bring the economy to a full-employment real GDP,
A. a recessionary gap must be bridged by increasing aggregate expenditures by $80 billion. B. an inflationary gap must be bridged by cutting aggregate expenditures by $80 billion. C. an inflationary gap must be bridged by cutting aggregate expenditures by $400 billion. D. a recessionary gap must be bridged by increasing aggregate expenditures by $400 billion.