If Smith believes the economy is self-regulating, then Smith
A) is less likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones, who believes the economy is not self-regulating.
B) is more likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones, who believes the economy is not self-regulating.
C) will believe that there is zero crowding out, too.
D) will believe that wages are inflexible downward, too.
E) b and d
A
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Use the following table to answer the next question. All figures in the table are in billions. RGDPC + IExportsImports$500$525$15$1055056015106005951510650630151070066515107507001510The equilibrium level of real GDP in this private open economy is
A. $700 billion. B. $600 billion. C. $650 billion. D. $550 billion.
A reasonable estimate of the world's population that lives on less than $1.5 per day is
A) 40 percent. B) 80 percent. C) 50 percent. D) 20 percent.
In a liquidity trap, the
A) IS curve is vertical. B) IS curve is horizontal. C) LM curve is vertical. D) LM curve is horizontal.
The official rate of unemployment is based on a(n)
a. door-to-door survey. b. telephone survey. c. employer survey. d. payroll survey.