In 2009, output was beneath potential. At the same time, the budget deficit hit a record high of over $1 trillion. If President Obama were to have pursued budget cuts, given the state of the economy, these spending cuts would have:
A. been procyclical.
B. increased interest rates.
C. crowded out investment.
D. been countercyclical.
Answer: A
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During the Civil War, inflation caused U.S. prices to rise by roughly:
a. 12 percent. b. 32 percent. c. 54 percent. d. 76 percent.
Harold, a delivery man, washes and irons his own shirts. Sarah, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
a. Harold must enjoy ironing more than Sarah does. b. Harold must be better at ironing than Sarah is. c. The opportunity cost of ironing is greater for Harold. d. Harold probably has an absolute advantage in ironing. e. Sarah has a higher opportunity cost of laundering her clothes than Harold does.
The emergence of the subprime mortgage market following the recession of 2001 set off a boom in the housing industry
a. True b. False Indicate whether the statement is true or false
What is the percentage of income received by the upper quintiles on line K?
