In an expansion, federal tax receipts increase proportionally more than real GDP without the need for any government policy. This increase is an example of
A) discretionary monetary policy.
B) automatic monetary policy.
C) automatic fiscal policy.
D) discretionary fiscal policy.
E) the effect of deficit spending.
C
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What actions must a central bank take if it is trying to maintain a pegged exchange rate, but there's downward pressure on the value of its currency
What will be an ideal response?
When an individual spends more than her/his disposable income, this person is
A) saving. B) investing. C) dissaving. D) unemployed.
Sonia was a great bookkeeper 20 years ago, then left the workforce to stay home and raise her children. Now that they're in college, Sonia looks for another bookkeeping job, but they all require computer skills that she doesn't have. Sonia would be considered:
A. frictionally unemployed. B. structurally unemployed. C. Sonia is not in the labor force.. D. seasonally unemployed.
Which of the following factors has the most quantitative importance on the oversimplified multiplier formula?
A. It ignores variable imports. B. It ignores price-level changes. C. It ignores income taxes. D. All of these equally affect the oversimplified multiplier formula.