Refer to the information. The operational lag of fiscal policy is reflected in event(s):
Answer the question on the basis of the following sequence of events involving fiscal policy:
(1) The composite index of leading indicators turns downward for three consecutive months,
suggesting the possibility of a recession. (2) Economists reach agreement that the economy is
moving into a recession. (3) A tax cut is proposed in Congress. (4) The tax cut is passed by
Congress and signed by the president. (5) Consumption spending begins to rise, aggregate
demand increases, and the economy begins to recover.
A. 1 and 2.
B. 2 and 3.
C. 3 and 4.
D. 5.
D. 5.
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Friedman and Schwarz argue that money is not neutral because
A) theoretical models of the economy don't show monetary neutrality. B) money is a leading, procyclical variable. C) they found several historical incidents in which changes in the money supply were not responses to macroeconomic conditions, and output moved in the same direction as money. D) they found no evidence that productivity changes or changes in government spending contributed to business cycles; only monetary changes preceded every recession.
Mechanic lien laws grant property rights to labor. They allow labor to make claims against the real property of businesses for work completed or materials supplied
Indicate whether the statement is true or false
Which are liabilities to a bank?
A. Property and capital stock. B. Capital stock and demand deposits. C. Vault cash and demand deposits. D. Capital stock and reserves.
The City Symphony presents three open-air concerts in the city park pavilion during the spring and summer. Many who attend make donations for symphony expenses, but the donation is not required. Some who attend make no contributions. Economists would
A. classify the noncontributors as detrimental externalities. B. call the concerts excludable events. C. call the noncontributors free riders. D. call the concerts depletable goods.