An economy currently has an inflationary gap. An increase in the money wage rate will ... the inflationary gap and ... the price level
What will be an ideal response?
decrease; increase
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According to behavioral economics, cognitive biases:
A. create errors in decision making, but these errors are random and follow no particular pattern. B. occur but are not prevalent enough to distort the behavioral predictions of neoclassical economics. C. are misunderstandings or misperceptions that cause systematic error. D. are solely the result of faulty heuristics.
The tax cut of 1964 (proposed by President Kennedy): a. was the last time fiscal policy was used
b. was the greatest failure as a demand-management tool. c. actually increased investment, consumption, and employment. d. shifted the aggregate demand curve leftward. e. was the first time the focus moved away from managing aggregate demand to focusing exclusively on aggregate supply.
During an election year, the federal government would mostly likely increase _____
a. tax rates b. interest rates c. the discount rate charged to commercial banks d. the minimum reserve requirement of commercial banks e. government purchases of goods and services
Welfare economics is the study of the welfare system
a. True b. False Indicate whether the statement is true or false