Fiscal policy formation causes a delay in implementation even though a recession can usually be recognized within a few weeks after it begins.
Answer the following statement true (T) or false (F)
False
A limitation on fiscal policy is time. In the real world it takes time to recognize that the economy is in trouble. A blip in the unemployment or inflation rate may not signal a trend. Before intervening, we may want to be more certain that a recessionary or inflationary GDP gap is emerging.
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Extensive agricultural cultivation from 1870 to 1910, as described by Hughes and Cain (2011), meant that
(a) there could be no increase in agricultural output per man hour. (b) the percentage increase in acreage under cultivation and the percentage increase in agricultural output was roughly the same. (c) the proportion of the labor force in agriculture steadily increased. (d) all of the above were true.
GDP equals $8 trillion. If consumption equals $5.5 trillion, investment equals $500 billion, and government spending equals $1.5 trillion, then:
a. exports exceed imports by $500 billion. b. imports exceed exports by $500 billion. c. net exports equal zero d. exports exceed imports by $1 trillion.
According to an EPA task force that examined risk assessment,
a. expert risk rankings are in line with those of the general public b. only expert risk rankings are relevant c. the federal government’s environmental priorities are consistent with expert risk ranking d. none of the above
A monopoly always operates in the inelastic portion of its demand curve
Indicate whether the statement is true or false