To be effective, countercyclical fiscal policy must be temporary

a. True
b. False


A

Economics

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If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity of lobster supplied, then the supply of lobster is

A) unitarily elastic. B) elastic. C) unit elastic. D) perfectly inelastic.

Economics

The evidence with respect to the validity of Ricardian Equivalence ________

A) suggests that it matters little whether government debt is held by the central bank or by the public B) clearly provides support for the argument C) clearly refutes the argument D) is difficult to interpret, since so many factors may affect national saving

Economics

What is an example of a variable cost in a major league baseball franchise?

a) stadium rent b) manager's salary c) stadium maintenance d) ticket-takers' salaries

Economics

Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project. This is an example of:

A. logrolling. B. the paradox of voting. C. the principal-agent problem. D. the median voter model.

Economics