The Bureau of Labor Statistics unveils an unemployment rate figure every
A) two weeks.
B) month.
C) two months.
D) quarter.
B
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Which of the following government outlays would be classified as a transfer payment?
A) payments of veterans benefits under the GI bill B) interest on the federal debt C) subsidies to gold-mining firms D) all of these
Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
a. MPC ? 1. b. (MPC ?1) / MPC. c. 1 / MPC. d. 1 / (1 ? MPC).
The longer the actual unemployment rate remains below what had been the natural rate, the more the natural rate itself increases
Indicate whether the statement is true or false
Which of the following is a necessary condition for government subsidies to influence a firm to choose an output level as if it were a Stackelberg leader?
A) The subsidy must be announced before the firms choose output levels. B) The subsidy must be equal to the firm's marginal cost. C) The subsidy must be equal to the firm's rival's marginal cost. D) The firm does not have any fixed costs.