Automatic stabilizers are fiscal policy measures that
A. do not require new legislation.
B. must be determined by the Congress in each budget.
C. are part of discretionary fiscal policy.
D. are determined by the Federal Reserve System.
Answer: A
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Net national product + ________ = ________
A) net interest; gross domestic product B) depreciation; gross national product C) depreciation; private disposable income D) private disposable income; gross national product E) none of the above
Why does the labor market have more than one equilibrium wage rate?
a. Workers differ in their productivities. b. Productivity of workers increases initially but later declines. c. The labor demand curve is backward bending. d. Marginal revenue product of different inputs used by firms vary. e. Employers compete among themselves to hire the best workers.
The gains from specific training in human capital tend to go to the
A. employing firm and not the individual. B. individual and not the employing firm. C. parents since they paid for the education in the first place. D. federal government in the form of higher taxes.
The U.S. economy in the mid-2000s did not experience stagflation because
A. energy prices declined. B. the energy content of GDP declined. C. it became more volatile since 1980. D. All of these responses are correct.