In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A ________ macroeconomist would support the use of ________
A) classical; taxes to push the economy back to full employment
B) Keynesian; fiscal or monetary policy to stimulate aggregate demand
C) classical; monetary policy to stimulate aggregate demand
D) Keynesian; technology to push the economy back to full employment
B
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Suppose the public increases the level of savings in anticipation of higher future taxes to service the national debt. This is an example of
A) Reaganomics. B) Ricardian equivalence. C) Smithsonian equivalence. D) Monetary equivalence.
An import quota is:
A. a tax on the good or services that are imported. B. a limit on the amount of a particular good that can be exported. C. a limit on the amount of a particular good that can be imported. D. None of these is true.
To protect the environment, governments in the United States have mainly used
a. legally enforceable direct controls on pollution. b. taxes on goods whose production creates pollution. c. direct taxes on emissions. d. discretionary guidelines suggested to polluting firms.
Suppose that books are measured on the horizontal axis and CDs are measured on the vertical axis. As long as the law of demand holds for books, than an increase in the price of books will generate a price-consumption curve that traces a path:
A. to the left. B. to the right. C. upward. D. downward.