Economists who believe that the economy has a strong self-correcting mechanism argued that, after September 11, 2001, the economy needed
a. a quick and expansionary fiscal policy stimulus.
b. a quick and expansionary monetary stimulus.
c. only a short time to return to equilibrium full employment.
d. President Bush to propose a large budget stimulus package.
c
You might also like to view...
Increased specialization in the computer industry is evidenced by
(a) the types of government policies implemented to aid the computer industry. (b) the growth of the software industry. (c) the growth of the manufacturing industry. (d) the growth of agriculture.
What is one possible reason a firm that produces balloons might outsource its accounting department?
A) There is no longer economies of scale. B) There are now economies of scope. C) There is no longer economies of scope. D) There are now economies of scale.
A $40 billion reduction in taxes increases Real GDP by $150 million. Assuming a constant price level, what does the tax multiplier equal?
A) 3.75 B) 3.00 C) 37.50 D) 0.27 E) ?0.73
The inflation rate can be calculated as the percentage change in:
A. real GDP. B. the exchange rate. C. the CPI. D. nominal GDP.