Which of the following is a normative statement?
a. The unemployment rate has decreased.
b. Governments should hire anyone who cannot get a job.
c. Governments in most developed countries provide unemployment benefits.
d. The majority of union members work for the government.
b. Governments should hire anyone who cannot get a job.
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What are the four types of externality?
What will be an ideal response?
What are the four explanations given as to why the Fed did not intervene to stabilize the banking system during the Great Depression?
What will be an ideal response?
(Advanced analysis) Assume that the MPS is .33 in an economy that has an aggregate supply curve with a slope of 1. An increase in investment spending of $10 billion will shift the aggregate demand curve rightward by:
A. $30 billion and increase real GDP by $15 billion. B. $30 billion and increase real GDP by $30 billion. C. $10 billion and increase real GDP by $30 billion. D. $10 billion and increase real GDP by $10 billion.
When producing at a production efficient point, ________
A) our choice of the goods can be either on or within the production possibilities frontier B) we can satisfy our all wants C) the opportunity cost of another good is zero D) we face a tradeoff and incur an opportunity cost