Unemployment compensation programs are called automatic stabilizers because payments increase during
A) expansionary periods.
B) recessions.
C) both recessions and expansions.
D) wartime only.
B
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According to Gordon which of the following statements about Friedman's fooling model is accurate?
A) The demand for labor depends on the nominal wage. B) As prices increase, firms will offer higher real wages; these higher wages will bring forth an increase in the supply curve of labor. C) The supply curve of labor depends on the expected real wage. D) All of the above statements are accurate.
Cyclical majorities can occur when _____
a. voters have single-peaked preferences b. voters are rationally ignorant c. voters are irrationally ignorant d. voters do not have single-peaked preferences
Given an exchange rate of 120 yen = $1, what is the U.S. dollar price of 1 yen?
a. $0.025 b. $0.0083 c. $120 d. $0.0012 e. $1
Suppose a small economy produces only HD TV sets. In year 1, 100,000 sets are produce and sold at a price of $1,200 each. In year 2, 100,000 sets are produced and sold at a price of $1,000 each. As a result:
A. Nominal GDP stays constant, while real GDP decreases B. Nominal GDP decreases, while real GDP stays constant C. Nominal GDP and real GDP both decrease D. Nominal GDP decreases, and real GDP decreases even more