What is an arrangement between countries to allow free trade between members called?
a. economic union
b. common market
c. trade forum
d. free trade agreement
d. free trade agreement
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Technological advances generally result in
A) increased average number of hours worked per day. B) increased infant mortality rates. C) decreased incomes. D) increased life expectancy.
The rational expectations theory indicates that expansionary policy will
a. stimulate real output in the long run but not in the short run. b. expand real output and employment if the public quickly anticipates the effects of the expansionary policy. c. equalize real and nominal interest rates during lengthy periods of inflation. d. fail to increase employment because individuals will anticipate it and take actions that will offset its impact.
For a given compensation potential (isocost curve), an employee with a large family is more likely to pick a wage-benefit mix that emphasizes
A. incentive piece rates. B. risk-averse commission plans. C. wages. D. fringe benefits.
The tax multiplier is smaller in absolute value than the government purchases multiplier because some portion of the
A) decrease in taxes will be saved by households and not spent, and some portion will be spent on imported goods. B) decrease in taxes will be saved by households and not spent, and some portion will be spent on consumer durable goods. C) increase in government purchases will be saved by households and not spent, and some portion will be spent on imported goods. D) increase in government purchases will be saved by households and not spent, and some portion will be spent on consumer durable goods.