You are a member of Congress in 2007-2009 when the economy is in a recessionary gap. If your goal is to achieve full employment, you should vote for
a. decreased government purchases, increased taxes, and a cut in transfer payments.
b. a balanced federal budget.
c. increased government purchases, decreased taxes, and an increase in transfer payments.
d. increased government purchases and transfer payments, and an equal increase in taxes.
c
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In the long run, an increase in the price level: a. increases output prices relative to input prices. b. increases the profit margins of many producers. c. increases RGDP supplied
d. Does none of the above.
Which of the following assertions is not correct about the multilateral approach to free trade?
a. The multilateral approach has the potential to result in freer trade than does the unilateral approach. b. The multilateral approach may have a political advantage over the unilateral approach. c. The multilateral approach is simpler than the unilateral approach. d. NAFTA and GATT both represent multilateral approaches to free trade.
If the demand for a good increased, what would be the effect on the equilibrium price and quantity?
What will be an ideal response?
A stock currently does not pay an annual dividenD) An investor expects this policy to remain in force. She believes, however, the stock of this company will sell for $110.00 per share four years from now. If she has an interest (discount) rate of 7% (0.07), the dividend discount model predicts the current price of this stock should be:
A. $83.92 B. you cannot apply the model to this example since it requires a dividend be offered. C. $86.35 D. $82.00