Does the term "mandatory spending" mean that spending must go on forever?
A. Yes, once appropriated, spending is indefinite.
B. No, once appropriated, spending is for the life of the program only or until it changes.
C. Yes, the laws which authorized this spending cannot be changed.
D. Yes, Congress has no right to change these spending programs.
Answer: B
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When considering imports and exports, economists include the ________ as a component of the GDP
A) net exports B) total imports C) gross exports D) total exports
Prices under an ideal cartel situation will be equal to
A) monopoly prices. B) competitive prices. C) prices under monopolistic competition. D) marginal cost.
ARCH and GARCH models are estimated using the
A) OLS estimation method. B) the method of maximum likelihood. C) DOLS estimation method. D) VAR specification.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher