As a result of the existence of automatic stabilizers
A. the government budget deficit will always increase during a period of economic recession.
B. the economy will always tend to move toward a full-employment equilibrium.
C. the government budget deficit will always increase during a period of economic expansion.
D. the business cycle will no longer exist.
E. None of the choices are correct.
A. the government budget deficit will always increase during a period of economic recession.
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If productivity growth accelerates, but workers do not realize it ________
A) they will expect large wage hikes B) they will not expect large wage hikes C) the natural rate of unemployment will rise D) the number of discouraged workers will rise
Which of the following people is counted in the labor force?
a. Jerry, who lost his job and last looked for work three months ago. b. Bob, who holds an MBA in management but can only find part-time employment at a fast-food restaurant. c. Phil, who would like to work as a stockbroker but is now a househusband. d. Mickey, who thinks he could easily become a millionaire, despite the opinion of the psychiatrist at the state hospital where he is a patient. e. Donna Jean, age 90, who is enjoying her retirement in Montana.
Each of the following, except one, is a characteristic of a monopolistically competitive market. Which is the exception?
a. differentiated products b. no significant barriers to entry c. many buyers d. a standardized product e. many sellers
If the Fed wants to reverse the effects of a favorable supply shock on the inflation rate, it should
a. increase the money supply growth rate which also moves unemployment closer to its natural rate. b. increase the money supply growth rate, but this moves unemployment further from its natural rate. c. decrease the money supply growth rate which also moves unemployment closer to its natural rate. d. decrease the money supply growth rate, but this moves unemployment further from its natural rate.