According to Robert Gordon, what led to the decline in unemployment in the 1940s?
A) structural barriers to expanding output and employment disappeared once a sufficiently large increase in aggregate demand had taken place
B) decline in unionization of the workforce
C) President Truman moving away from the policies implemented by President Roosevelt
D) the strengthening of property rights following the end of the New Deal
A
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Imagine you own an ice cream store in New York City. Unpredictable inflation hurts your business because:
Expansionary fiscal policy during a recession is most effective when it
a. creates jobs, even if they are on unproductive projects. b. directs the economy to full employment and resources into productive projects. c. substantially changes the composition of aggregate demand. d. provides members of Congress with large political contributions.
Which of the following is an example of U.S. foreign direct investment?
a. A Swedish car manufacturer opens a plant in Tennessee. b. A Dutch citizen buys shares of stock in a U.S. company. c. A U.S. based restaurant chain opens new restaurants in India. d. A U.S. citizen buys stock in companies located in Japan.
Jordan loaned Taylor $1,200 on March 15, 2009. Taylor returned $1,260 on March 14, 2010. Inflation was 2% over the 1-year period. What is the real interest rate that Taylor paid?
What will be an ideal response?