During a recession, automatic stabilizers cause the federal deficit to
A. either increase or decrease.
B. remain unchanged.
C. increase.
D. decrease.
Answer: C
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The unemployment rate is interpreted as the percentage of the
A. able-bodied population who are not working. B. labor force that are not employed. C. workforce that have been laid off. D. adult population who are unemployed.
Suppose the nominal interest rate on a savings bond is 7 percent a year and the inflation rate is 4.5 percent a year. How much is the real interest rate?
A) 4.5 percent B) 1.56 percent C) 2.5 percent D) 7 percent E) 11.5 percent
The belief that the ethically proper thing to do in any situation is the thing that maximizes society's overall happiness and minimizes society's overall suffering is called
A) utilitarianism. B) diminishing marginal utility. C) the benefits-received principle. D) transcendentalism.
In building an economic model, variables that are taken as given are referred to as ________ variables
A) exogenous B) endogenous C) concrete D) presumptive