Since 1940, the U.S. government has experienced
A) twice as many annual budget surpluses as annual budget deficits.
B) only one year with a budget surplus.
C) about the same number of years with budget deficits as with budget surpluses.
D) many more budget deficits than budget surpluses.
D
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Katz and Krueger found that minimum wage laws had a negligible impact on teenage unemployment in the fast-food industry. Describe the characteristics of labor demand and supply that might produce such a result
What will be an ideal response?
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?
Which of the following is an example of the snob effect?
A) The fewer consumers that buy the operating system, the fewer the applications that will be available. B) The more people that buy a luxury watch, the less value consumers put on the watch. C) The fewer ATMs available in the city, the fewer consumers want to join the network. D) None of the above.
Exhibit 12-7 Negative income tax
Under the negative income tax scheme in Exhibit 12-7, families earning between $10,000 and $40,000 would:
A. receive the maximum negative income tax payment of $20,000. B. receive payments under the negative income tax. C. pay no income taxes, but receive no payments. D. pay taxes of $5,000.