The diminished employment prospects for the graduates of 2002 is most likely due to the existence of a(n)
a. inflationary gap.
b. significant increase in real GDP.
c. shift of the aggregate demand curve outward.
d. recessionary gap.
d
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When the Fed sells short-term bonds and buys long-term bonds, it is engaging in
A) changing the discount rate. B) forward guidance. C) backward guidance. D) a maturity extension program.
A curve showing the relationship between tax rates and tax revenues is called a __________ curve
A) Phillips B) Keynesian C) Gaussian D) Laffer
In economics, a public good
A. Cannot be denied to consumers who have not paid. B. Is provided in an optimal amount by the market. C. Is any good produced by the government. D. Has social costs of production lower than private costs of production.
Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
A. people will forgo private consumption now as society substitutes government goods for private goods. B. people believe that they can consume the government provided goods and have future generations pay the bill. C. the interest rate on the debt will increase. D. that people do not realize that taxes have increased also.