Changes in government expenditures affect planned spending
A. only when there is an expansionary gap.
B. autonomously.
C. directly, by changing autonomous expenditures.
D. indirectly, by changing induced expenditures.
Answer: C
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The Fed's interest rate response to the rising output ratio experienced from 1997 to 1999 is explained by
A) beneficial supply shocks which pushed down the inflation rate. B) the Fed's efforts to help end the Asian financial crisis C) the Fed's uncertainty about the concepts of the natural level of output and natural rate of unemployment. D) All of the above.
The portion of US debt owned by various government trust funds
A. peaked in 2010. B. has remained constant (by law). C. continues to rise. D. dropped to an all-time low in 2015.
A sharp increase in the divorce rate increases the number of lawyers hired to determine divorce settlements. This will
A) decrease GDP and increase well-being in the economy. B) decrease GDP and decrease well-being in the economy. C) increase GDP and decrease well-being in the economy. D) increase GDP and increase well-being in the economy.
Economists have used ________ and ________ in experiments designed to determine whether consumers care about fairness when they make decisions
A) the income effect; the substitution effect B) Giffen goods; luxury goods C) network externalities; the endowment effect D) the ultimatum game; the dictator game