The key to assessing the direction of discretionary fiscal policy is to observe changes in the cyclically adjusted deficit.
Answer the following statement true (T) or false (F)
True
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What is meant by the phrase "economic integration?"
What will be an ideal response?
Suppose the marginal product of labor in the economy is given by MPN = 0.002(16,000 - N), while the supply of labor is 1000 + 1000w
(a) Find the market-clearing real wage rate and level of employment. (b) What happens to the wage rate and employment if wealth rises, reducing the supply of labor to 500 + 1000w? (c) What happens to the wage rate and employment if after wealth has risen as in part (b), there is a productivity shock that increases the marginal product of labor to MPN = 0.0025(16,000 - N)?
From 2000 to 2001, the U.S. economy's annual growth rate slowed down abruptly
a. True b. False Indicate whether the statement is true or false
In the long run,
a. the natural rate of unemployment depends primarily on the level of aggregate demand. b. inflation depends primarily upon the money supply growth rate. c. there is a tradeoff between the inflation rate and the natural rate of unemployment. d. All of the above are correct.