Which of the following statements would appeal to someone who favors an expanded public sector as the basis of expansionary fiscal policy?
a. "The government isn't the solution; it's the problem."
b. "The government that governs least governs best."
c. "The American people want national defense; they want laws to be enforced; they want federal support for education and environmental protection, and they want transfer payments for the elderly and unemployed."
d. "If you ever got anything good out of the government you can be sure that some rich so-and-so got more."
c
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In 1990-1991, the government budget deficit ________ mainly due to the ________
A) rose, recession's effect on tax collection B) rose, expenditures of the Persian Gulf War C) fell, recession's effect on government expenditures D) fell, economic stimulus provided by the Persian Gulf War
Assume the economy is in equilibrium where real GDP equals potential GDP, and the economy experiences a negative demand shock
Describe what happens in the IS-MP model, and explain what policy the Fed could use to keep the inflation rate from changing?
The fact that Alice spends no money on travel:
A) implies that she does not derive any satisfaction from travel. B) implies that she is at a corner solution. C) implies that her MRS does not equal the price ratio. D) any of the above are possible.
An inward shift of the production possibilities frontier represents
A) positive economic growth. B) negative economic growth. C) a rise in the unemployment rate. D) technological improvement.