Which of the following factors did not contribute to the federal budget surpluses in the 1990s?
a. Higher taxes on the rich
b. More federal government spending discipline
c. Market globalization
d. Slower consumer spending
e. Rising business optimism based on technological innovation
d
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What is the difference between the poverty line and the poverty rate?
What will be an ideal response?
Which of the following is an example of adaptive expectations?
a. James hears that many companies are laying off people and decides not to change his job at this time b. Kirsten reads about the continuous rise in the prices of necessary goods and the simultaneous rise in the level of unemployment and knows that the country is heading for stagflation. c. Kate knows that inflation is on the rise and that the best strategy for her firm would be to lower the price of its product. d. Peter knows that the Federal Reserve is planning to lower interest rates next month and decides to apply for a loan.
Based on your understanding of the IS-LM model, graphically illustrate and explain what effect a reduction in consumer confidence will have on output, the interest rate, and investment
What will be an ideal response?
What does a production possibilities curve show?
What will be an ideal response?