Suppose the federal government increases the unemployment benefits financed by higher income taxes. In this case, which of the following is likely to occur?
a. An increase in the equilibrium real GDP
b. A redistribution of disposable income from the employed to the unemployed
c. An increase in the interest rate
d. An increase in the discount rate charged by the Central Bank
e. An increase in the income of the rich and a decrease in the income of the poor
b
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If the demand for product X is inelastic, a 4% increase in the price of X will ________ the quantity demanded of X by ________ than 4%.
A. decrease; less B. increase; less C. decrease; more D. increase; more
Keynesian economics:
A. affirms the classical economists' basic premise concerning competitive markets. B. believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downwardly. C. emphasizes the possibility that an economy can never be in equilibrium at less than full employment. D. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP.
Approximately what percentage of local government expenditures goes to finance education?
A. 36. B. 44. C. 53. D. 69.
If the quantity of glazed donuts demanded increases by 6% when the price of cinnamon rolls increases by 9%, the cross-price elasticity of demand between glazed donuts and cinnamon rolls is
A. -1.5. B. -0.33. C. 0.67. D. 1.5.