“Budget deficits are inflationary.” The truth of this statement depends on
A. aggregate demand in the economy.
B. the shape of the aggregate supply curve.
C. the size of the national debt.
D. existing debt as a percentage of GDP.
Answer: B
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Describe, in general terms, how an economist calibrates a macroeconomic model. What statistics can be usefully examined to see how well the model corresponds to the data?
What will be an ideal response?
Using the above figure, which of the lines in the above diagram represents a progressive tax?
A) A B) B C) C D) none of them
When an athletic shoe company is producing a level of output at which price is greater than MC, from society's standpoint the company is producing too
A. Little because society would be willing to give up more alternative goods in order to get additional shoes. B. Little because society is giving up more to produce additional shoes than the shoes are worth. C. Much because society is giving up more to produce additional shoes than the shoes are worth. D. Much because society would be willing to give up more alternative goods in order to get additional shoes.
The deposit expansion multiplier is increased if the Federal Reserve
A) buys government securities. B) sells government securities. C) lowers reserve requirements. D) raises reserve requirements.