Discuss how successful the American Recovery and Reinvestment Act was at increasing real GDP and employment
What will be an ideal response?
The American Recovery and Reinvestment Act tried to increase real GDP and employment by both increasing government purchases and cutting taxes. Economists have not yet come to a consensus on how effective the act was. If the expenditure multiplier is as large as the Obama administration and the Congressional Budget Office believe, then the act substantially increased both real GDP and employment. However, if the expenditure multiplier is smaller, as other studies indicate, then the act increased real GDP and employment by a relatively modest amount.
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The higher the number of people who have access to e-mail, the more valuable it is to everyone. This is an example of a(n) ________
A) moral hazard B) adverse selection C) network externality D) negative externality
What is a "structural" relationship?
A) a relationship that depends on the basic behavior of consumers and firms and remains unchanged over long periods B) any relationship that cannot be anticipated C) a relationship that depends on the size of firm investments in capital such as buildings and other structures D) a relationship between any two variables that is temporary
The Federal Reserve uses dynamic open market operations to
A) alter the money multiplier. B) alter the growth path of bank reserves. C) inject reserves temporarily into the system. D) take reserves temporarily from the system.
The refusal to work by unionized labor is an example of
A. A lockout. B. A strike. C. Collective bargaining. D. The right to work.