According to the Application, economist John B. Taylor found that the aid to state and local governments which were a part of the 2009 stimulus package were used primarily to
A) increase spending on transfer programs, goods, and services.
B) increase spending on goods and services.
C) increase spending on transfer programs, but spending on goods and services declined.
D) increase spending on infrastructure, but spending on transfer programs declined.
C
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If the present value of an individual's savings account is $100,000, what is its future value in 5 years if the account earns an annual interest rate of 2 percent?
A) $112,125.40 B) $109,582.03 C) $110,250.00 D) $110,408.08
Movement from an inefficient allocation to an efficient allocation in the Edgeworth Box will
A. increase the utility of all individuals. B. increase the utility of at least one individual, but may decrease the level of utility of another person. C. increase the utility of one individual, but cannot decrease the utility of any individual. D. decrease the utility of all individuals.
In a basic model of wage and employment determination with a monopoly union, the monopoly union stipulates the wage. The firm then responds by choosing an employment level that maximizes
A. profit. B. the wage. C. strike duration. D. output. E. labor costs.
Which of the following has a tendency to raise the unemployment rate?
A) implementing a minimum wage above the market wage in an economy B) reducing unemployment insurance in an economy C) offering wages at the market-clearing rate D) reducing labor union membership in an economy