Which of the following statements correctly identifies a reason why inflation can be used as a countercyclical policy tool?
A) Inflation sometimes increases the demand for workers that increases output and helps combat slowdowns.
B) Inflation reduces money costs and hence stimulates an economy during slowdowns.
C) Inflation increases consumer demand which is necessary for combating slowdowns.
D) Inflation increases consumer confidence, which is an absolute necessity to counter act business cycles.
A
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What percentage of the U.S. population was subjected to the 1913 income tax?
a. 1 percent b. 5 percent c. 10 percent d. 15 percent
In a two-input model you can tell that a non-optimal short-run production decision is being made if
a. all decisions in the short run are nonoptimal b. the rate of technical substitution is equal to the ratio of the input prices c. the rate of technical substitution is not equal to the ratio of the input prices
An example of in-kind assistance to the poor is TANF
a. True b. False Indicate whether the statement is true or false
The income-expenditure identity for a closed economy is:
A. Y = C + I + G. B. Im ? Ex = C + I. C. Y = C + I + G + NX. D. Y + G = C + I ? NX.