Which of the following would increase prices for U.S. consumers?
a. a tariff on imported automobiles
b. an automobile import quota
c. a foreign government subsidizing auto production
d. (a) and (b) above only
d
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How do advocates of discretionary stabilization policy view frequent changes in spending and tax policy?
a. The changes make the economy more difficult to forecast. b. The changes make life more difficult and hectic for Congress and the Fed. c. The changes smooth out the business cycle, making planning easier. d. The changes cause more instability in the economy and make planning more difficult.
The primary source of purchasing power used to buy imported goods is
a. the monetary sector. b. the balance of payments deficit. c. the exports of a nation. d. taxation and other revenue-generating activities.
The three variables predicted by forecasting are the timing, magnitude, and length of exchange rate movements.
a. true b. false
If the labor force increases in size, which of the following would NOT occur?
A. The labor supply curve would shift to the right. B. The equilibrium wage would fall. C. The labor demand curve would shift to the right. D. The number of workers employed would rise.