President George W. Bush’s tax cut in 2001 was a rare example of
A. timely monetary policy.
B. timely fiscal policy.
C. the slow response of policy to events.
D. the inability of Congress to react to policy needs.
Answer: B
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With the assumption that some voluntary exchanges that would make both parties better off are somehow being blocked, we have the basis for a ________ macroeconomic model, such as those constructed by ________ economists
A) non-market-clearing, New Keynesian B) non-market-clearing, New Classical C) market-clearing, New Keynesian D) market-clearing, New Classical
______ has taken on some negative political connotations because more international trade and more immigration inevitably creates some losers as well as many winners.
A. Globalization B. Protectionism C. Competition D. None of the above is correct.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and current international transactions rises. b. Real GDP rises, and current international transactions remain the same. c. Real GDP rises, and current international transactions become more negative (or less positive). d. Real GDP rises, and current international transactions become more positive (or less negative). e. Real GDP falls, and current international transactions become more negative (or less positive).
In the short run, average total cost is
A) higher than average variable cost. B) equal to average variable cost. C) less than average variable cost. D) sometimes higher and sometimes lower than average variable cost.