In the United States, income taxes and transfer payments:
A. decrease interest rates and the net export effect.
B. act as automatic stabilizers for fluctuations in income.
C. are the source of most of the operational lag with fiscal policy.
D. destabilize the economy.
Answer: B
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Imagine you own an ice cream store in New York City. Unpredictable inflation hurts your business because:
Distinguishing between stock measures and flow measures, the flow measures are
A) the labor force only. B) the number of people who lost their jobs and the number of people who found jobs only. C) the total number of people who are unemployed only. D) the total number in the labor force and the total number of people who are unemployed only.
If a country experiences a high rate of inflation, then the demand for that country's currency will increase
a. True b. False Indicate whether the statement is true or false
Suppose the population of the U.S. is 300 million people. Of these, the U.S. Bureau of Labor Statistics classifies 70 million people as "not surveyed," 80 million people as not in the labor force, and 144 million as employed. What would be the unemployment rate in this example?
Select one: a. 2% b. 4% c. 6% d. 8%