What fiscal policies can be used to get the economy out of a contractionary gap?
a. Increase tax rates and increase government spending.
b. Decrease tax rates and decrease government spending.
c. Decrease tax rates and increase government spending.
d. Increase tax rates and decrease government spending.
c. Decrease tax rates and increase government spending.
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Does correlation always imply causation? Why or why not? Explain with the help of real-life examples
What will be an ideal response?
According to classical macroeconomists, prices adjust ________ to shocks, so the government should ________
A) slowly; do little B) rapidly; do little C) rapidly; fight recessions D) slowly; fight recessions
It is estimated that approximately __________ percent of U.S. depositors have their deposits fully federally insured
A) 25 B) 40 C) 70 D) 99
Two friends, Diane and Sam, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Sam tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?
a. Diane's wage. b. Sam's time. c. Diane's tips. d. Sam's tips. e. Both Diane's and Sam's tips.