A contractionary fiscal policy
I. decreases a government budget deficit or increases a government budget surplus.
II. includes tax cuts.
III. may include discretionary cuts in transfer payments.
A) I, II, and III
B) I and II only
C) I and III only
D) II and III only
Ans: C) I and III only
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If real GDP exceeds potential GDP, then employment is ________ full employment, and the unemployment rate is ________ the natural unemployment rate
A) equal to; below B) above; below C) equal to; equal to D) below; above E) above; above
In international trade, all payments and gifts that are related to the purchase or sale of both goods and services are referred to as the
A) current account. B) capital account. C) labor account. D) official reserve transactions account.
Which of the following statements best describes the reason for the large migration of African-Americans from the south to the north during the 1920s?
a. This movement was just a continuation of the same trend that had been occurring in large scale since the end of the Civil War. b. African-Americans moved north to reunite families that had been divided during the many years of slavery. c. The African-Americans who had worked in the south had mostly been employed in the manufacturing sector, which suffered a downturn in the 1920s. d. Employers in the North who had traditionally hired European immigrants had to search elsewhere when immigration restrictions were imposed.
The term tax incidence refers to
a. whether buyers or sellers of a good are required to send tax payments to the government. b. whether the demand curve or the supply curve shifts when the tax is imposed. c. the distribution of the tax burden between buyers and sellers. d. widespread view that taxes (and death) are the only certainties in life.