Describe the characteristics of fiscal policy in the Great Recession. Was it expansionary or contraction?
What will be an ideal response?
From 2007 to 2009, fiscal policy was expansionary. The cyclically adjusted budget was ?1.3 percent in 2007 and moved to ?7.1 percent in 2009.
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If velocity is equal to 4, this means that
A) the rate of growth of the money supply is 4. B) an increase in the money supply will lead to an increase in aggregate supply of 4. C) each dollar of the money supply is spent on the average 4 times per year. D) for every 4 dollars of the money supply, nominal GDP will increase by 4.
The tax multiplier is calculated as 1 / (1 - b)
Indicate whether the statement is true or false
In calculating the unemployment rate, part-time workers over the age of 16 are counted as
A) not in the labor force. B) employed if they are part-time workers for noneconomic reasons and unemployed if they are involuntary part-time workers. C) not in the working-age population. D) unemployed. E) employed.
For Industry A, its 1-firm, 2-firm, 4-firm and 8-firm concentration ratios are the same. Based on this, we can conclude that Industry A is
A. pure competition. B. oligopoly. C. monopolistic competition. D. pure monopoly.