The tax cut of 2001 turned out to be well-timed because it caused a
a. rightward shift of the aggregate demand curve.
b. rightward shift of the aggregate supply curve.
c. leftward shift of the aggregate demand curve.
d. leftward shift of the aggregate supply curve.
a
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If the GDP price index is 137, this value means that prices have increased
A) 137 percent in the last year. B) 37 percent in the last year. C) 37 percent since the base year. D) 137 percent since the base year. E) 63 percent since the base year.
In the Keynesian view,
a. both monetary and fiscal policy can affect income. b. monetary policy can be ineffective when money demand is less interest rate elastic. c. fiscal policy is a more reliable way to stimulate output during a recession. d. all of the above
The following types of statistical inference are used throughout econometrics, with the exception of
A) confidence intervals. B) hypothesis testing. C) calibration. D) estimation.
One complication that tends to prolong recessionary gaps is that wages
a. are fixed by unions, which represent nearly all workers in the United States. b. tend to rise rapidly. c. rarely fall. d. tend to move in the opposite direction from prices.