During a severe and persistent recession, Keynesians would most likely propose
A) tax increases.
B) a tight money policy.
C) annually balanced federal budgets.
D) macroeconomic stabilization.
D
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The figure above shows Lauren's demand curve for Barbie dolls and the market price for Barbie dolls. Using the area of the consumer surplus triangle, Lauren's total consumer surplus from purchasing 3 dolls is
A) $5.50. B) $10.00. C) $22.50. D) $45.00. E) 3 dolls.
How does the multiplier for a change in government spending compare to the multiplier for a change in taxes?
a. It is smaller. b. It is the same. c. It is larger. d. It cannot be calculated.
Suppose you are deciding whether or not to buy a particular bond for $5,980.17 . If you buy the bond and hold it for 5 years, then at that time you will receive a payment of $10,000 . You will buy the bond today if the interest rate is
a. no less than 9.48 percent. b. no greater than 9.48 percent. c. no less than 10.83 percent. d. no greater than 10.83 percent.
A recessionary gap exists when AD and SRAS
A) fail to intersect. B) intersect to the right of Natural Real GDP. C) intersect to the left of Natural Real GDP. D) both have a positive slope.