Fed policies since the mid-1980s have been intended to
A) steepen the growth path of natural real GDP.
B) taper down the growth rate of actual real GDP as it approaches natural real GDP.
C) accelerate the growth rate of natural real GDP whenever actual real GDP exceeds it.
D) use the "runway" of natural real GDP as a springboard to faster growth.
B
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The table above gives the U.S. CPI for six years. Calculate the inflation rates between 1997 to 1998, 1998 to 1999, 1999 to 2000, 2000 to 2001, and 2001 to 2002
What will be an ideal response?
If a general sales tax is enacted, we can predict with certainty that individuals will work less
a. True b. False
A Congressional attempt to reduce deficit spending within a specific time frame was
a. the Kemp-Roth Act b. the Gramm-Rudman-Hollings Act c. the Tax Reform Act of 1986 d. the Humphrey-Hawkins Act of 1978 e. the Helms-Burton Act of 1995
The convergence theory predicts that:
A. countries that start out poor should initially grow faster than ones that start out rich, but will eventually slow to the same growth rate. B. poor countries are not generally expected to sustain a high growth rate and surpass the existing rich countries. C. even if countries differ in their rates of savings, population growth, and other features, they will still converge to the same growth rate, although not the same level of income. D. All of these are predicted by the convergence theory.