How might fiscal policy be used to correct a recessionary gap?
A. Taxes would be cut to stimulate aggregate demand.
B. The exchange rate would be adjusted to encourage imports.
C. The interest rate would be adjusted to encourage saving.
D. The exchange rate would be adjusted to discourage imports.
Answer: A
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The following table shows values of annual real GDP per capita over time. Use it to answer the next question.1810$1,5001860$2,1001910$3,9001960$18,0002010$43,600What was the rate of growth in real GDP per capita between 1810 and 2010?
A. 2,807% B. 2,907% C. $43,600 D. $42,100
Unions support minimum wage laws because an increase in the minimum wage
A) increases the supply of union labor. B) decreases the supply of union labor. C) increases the demand for union labor. D) decreases the demand for union labor.
A risk-seeker is likely to:
A. buy a government bond instead of a stock. B. put money in a savings account instead of investing in a start-up company. C. invest in a start-up company instead of putting his money under his mattress. D. put his money under his mattress instead of buying company stock.
A simultaneous increase of government purchases by $50 billion and a tax hike of $50 billion should stimulate the economy by $50 billion.
Answer the following statement true (T) or false (F)