If the economy is in a liquidity trap, then:
a. fiscal policy can still stimulate the economy through lower interest rates.
b. monetary policy cannot stimulate the economy by lowering interest rates.
c. the precautionary demand for money is falling.
d. all of the above.
B
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Globalization and growing technology have produced
A) more opportunities for low-skilled labor than for high-skilled labor. B) equal opportunities for low-skilled and high-skilled labor. C) outsized, exponential rewards for superstar talent. D) rewards for labor that have reduced income inequality.
Unemployment is measured primarily in urban areas because in rural areas farm work is usually an outlet for labor
a. True b. False
Improvement in technology in the entire industry or an increase in the education of employees creates a(n):
a. increasing cost industry. b. a downward sloping LRS. c. constant cost industry. d. decreasing cost industry.
The consumer price index measures the cost of:
A. a changing basket of goods and services. B. all goods and services purchased by consumers. C. a fixed basket of goods and services. D. goods and services required to live above the poverty level.