The traditional Keynesian approach to fiscal policy assumes
A) exchange rates are fixed.
B) the focus of attention should be the long run.
C) prices are flexible while interest rates are not.
D) current taxes are the only taxes taken into account by firms and consumers.
D
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Based on your findings, show that the new lead standard passed the feasibility test for this three-year period.
REGULATORY IMPACT ANALYSIS (RIA) FOR LEAD IN DRINKING WATER In June 1991, the EPA announced a maximum contaminant level goal (MCLG) of zero for lead and a more stringent maximum contaminant level (MCL) of 0.015 mg/l. This new primary standard lowered the allowable lead level in drinking water from its former limit of 50 parts per billion (ppb) to 15 ppb. Because these regulations were expected to have a substantial financial impact on the regulated community — in excess of $100 million per year, they were subject to Executive Order 12291 and had to be accompanied by a Regulatory Impact Analysis (RIA). A summary of the estimated benefits and costs (stated as annualized values) from this RIA, is given below. BENEFITS Health (based on avoided medical costs) From corrosion control and source water treatment: $2.8 – $4.3 billion per year From replacement of lead service lines $70 – $240 million per year Material Accruing to households and water systems $500 million per year Incremental Benefits $3.4 – $5.0 billion per year COSTS Treatment, implementation, education costs Treatment costs: $390 – $680 million Monitoring costs: $ 40 million Education costs: $ 30 million State implementation costs: $ 40 million Incremental Costs $500 – $790 million per year NET BENEFITS Net Benefits: $2.9 – $4.2 billion per year
Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy. If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if the Fed had taken no action?
A) Real GDP and then inflation rate B) real GDP and the unemployment rate C) real GDP and potential GDP D) potential GDP and the inflation rate
As a result of the Uruguay Round, production of ________ goods increased in Asian developing countries and polluting emissions in these countries ________ as a result.
A. unskilled-labor-intensive; decreased B. capital and skill-intensive; increased C. capital and skill-intensive; decreased D. unskilled-labor-intensive; increased
The most common measure of productivity shocks used by real business cycle theorists is
A. average labor productivity. B. the change in the capital stock. C. the Solow residual. D. unit labor costs.