Which of the following describes the final lag that impacts expansionary fiscal policy?
A. It takes time for policy makers to agree on a solution to the problem.
B. It takes time for policymakers to recognize that there is a problem.
C. It takes time for government to spend large amounts of money.
D. It takes time for government spending to ripple through the economy.
Ans: D. It takes time for government spending to ripple through the economy.
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Kaitlyn and Larissa have formed a dog bathing and grooming business. The number of dogs they can bathe or groom in any given day is depicted in Table 2.1. As they groom more dogs, the opportunity cost of grooming additional dogs
A) rises. B) falls. C) remains constant. D) depends on the prices being charged.
The country of Kemper is on its aggregate production function at point W in the above figure. The government of Kemper passes a law that makes 4 years of college mandatory for all citizens. After all citizens have their education, the economy will
A) move to point such as Y. B) remain at point W. C) move to point such as X. D) move to point such as Z.
Which of the following is an example of a "damaged goods" strategy
a. A supermarket offers free parking space but charges higher for groceries b. A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy c. A gift store hikes up the prices on gift wrapping services during its seasonal sale d. All of the above
Inflation reduces the multiplier effect by reducing consumers' wealth and purchasing power
a. True b. False Indicate whether the statement is true or false