Automatic stabilizers decrease the impact of a recession on the level of economic activity because they
A) reduce the interest rate and so allow firms to increase their level of investment.
B) mean disposable income does not change by as much as real GDP.
C) increase taxes so the budget is always balanced.
D) raise the exchange rate so U.S. exports become more attractive to foreigners.
E) increase the quantity of money in circulation.
B
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Screening is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks
As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters
a. economies of scale. b. diseconomies of scale. c. increasing marginal product. d. diminishing marginal product.
How often does the FOMC meet?
a. once a week b. once a month c. two times per year d. eight times per year
Are these applicants likely to be? cyclically, frictionally, or structurally? unemployed, and what would be the reason that most of them are? unemployed? Briefly explain.
What will be an ideal response?