Automatic stabilizers create ________ during recessions from increased government spending on welfare and unemployment insurance, and reduced tax revenues, and create _________ during peak growth periods of the economy from reduced government welfare spending and increased tax revenues
a. fiscal stimulus, fiscal contraction
b. fiscal stimulus, fiscal stimulus
c. fiscal contraction, fiscal stimulus
d. fiscal contraction, fiscal contraction
a
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If we compare the U.S. GDP and the Chinese GDP
A) real GDP per person is about the same in the two countries. B) U.S. real GDP per person is less than China's real GDP per person once we adjust for currency differences. C) China's real GDP per person is less than real GDP per person in the United States. D) real U.S. GDP per person was much larger than China's real GDP per person when purchasing power parity prices are used but is less than China's real GDP per person when exchange rate prices are used.
Figure 5-1
In , S1 and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?
a.
The restricted market supply would be S3, resulting in a lower price and a higher than efficient level of output.
b.
The restricted market supply would be S3, resulting in a higher price and a less than efficient level of output.
c.
The restricted market supply would be S2, resulting in a lower price and a higher than efficient level of output.
d.
The restricted market supply would be S2, resulting in a higher price and a less than efficient level of output.
You start with a portfolio valued at $500. Over the next twelve months it loses 40%; the following year it has a gain of 30%. At the end of two years your portfolio is worth:
A. $450. B. $410. C. $390. D. $300.
In what year did the housing bubble burst?
A. 2000 B. 2006 C. 2008 D. There was no such event.