An individual is said to be a discouraged worker if he or she
A) is working, but prefers not to work.
B) is working part time, but would prefer a full time job.
C) is working in jobs she/he is not suited for.
D) wants to work, and is actively searching for a job.
E) wants to work, but has given up searching for a job.
E
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The combined effects of a fiscal contraction and a monetary expansion are
A. higher real interest rates. B. exchange rate depreciation. C. increased current account deficit. D. All of these responses are correct.
The Earned Income Tax Credit avoids the poverty trap by doing which of the following?
a. Lowering benefits by 21.06 cents for every dollar earned above $17,530 b. Insisting people work in order to claim the benefit c. Allowing workers to keep their benefits no matter how high their income increased d. Increasing benefits by 21.06 cents for every dollar earned above $17,530
Which of the following represents positive economics?
a. All of these choices are positive economic analysis. b. Policy A is fair. c. Outcome B is the best objective to achieve. d. If policy A is followed, then outcome B results.
According to the quantity theory of money:
A) when the gap between the growth rate of money supply and the growth rate of real GDP widens, inflation decreases. B) when the gap between the growth rate of money supply and the growth rate of real GDP widens, inflation increases. C) when the gap between the growth rate of money supply and the growth rate of real GDP widens, nominal interest rates decrease. D) when the gap between the growth rate of money supply and the growth rate of real GDP widens, real interest rates increase.