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increase total expenditures in order to reduce unemployment. Which of the following would achieve this objective...
1. Which one of the following is not an example of expansionary fiscal policy? a. Increasing...
1. Which one of the following is not an example of expansionary fiscal policy? a. Increasing government spending on unemployment insurance b. Decreasing government spending on education c. Decreasing federal income tax rates d. Increasing government spending on the military e. Decreasing local property taxes 2. In recessions, tax revenues tend to decline and transfer payments like unemployment insurance and food stamps tend to increase, so these programs... a. increase unemployment. b. create budget surpluses during economic downturns. c. are...
(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer...
(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer choices An increase in domestic prices relative to foreign prices A decrease in the interest rate A decrease in real wealth An increase in income taxes A decrease in government purchases of goods and services (2) If the current unemployment rate is 5 percent and the natural unemployment rate is 6 percent, then the economy is Group of answer choices producing a level of...
Which of the following would reduce the natural rate of unemployment? a. an increase in the...
Which of the following would reduce the natural rate of unemployment? a. an increase in the rate of money growth but not increased unemployment compensation b. an increase in unemployment compensation but not an increase in the rate of money growth. c. neither an increase in unemployment compensation nor an increase in the rate of money growth. d. both an increase in the rate of money growth and increased unemployment compensation
Which of the following would reduce the natural rate of unemployment? a. The Internet provides more...
Which of the following would reduce the natural rate of unemployment? a. The Internet provides more readily available information about available jobs. b. Provincial legislators voting for increasing minimum wage. c. Laws are passed that make it more difficult to monitor the efforts of workers. d. All of the above are correct.
Related to the Economics in Practice Federal government expenditures and receipts for the simple economy of...
Related to the Economics in Practice Federal government expenditures and receipts for the simple economy of the nation of Topanga are listed in the table below. The government of Topanga would like to reduce the debt-to-GDP ratio, and the Finance Minister of Topanga has proposed the following: "The best way to reduce the debt-to-GDP ratio is to increase GDP, because with a larger GDP, the ratio will have to get smaller. I therefore propose that government expenditures be increased by...
_lag. The lag between an increase in government spending and the impact of this increased spending...
_lag. The lag between an increase in government spending and the impact of this increased spending on the economy is called the a. effectiveness b.transmission C. legislative d. data QUESTION 49 Complete crowding out implies that as government increases purchases by $1, a. private spending decreases by $1. b. Real GDP remains unchanged. c. there is an equal offsetting decrease in one or more of the components of private expenditures. d. all of the above e none of the above...
80. Using your knowledge of the economy, answer the following 80a. Which statement correctly describes the...
80. Using your knowledge of the economy, answer the following 80a. Which statement correctly describes the effects of fiscal instruments/measures? a. Government spending increases aggregate expenditures; taxes increase disposable income, and hence consumption. b. Government spending increases aggregate expenditures; taxes reduce disposable income, and hence consumption. c. Government spending decreases aggregate expenditures; taxes increase disposable income, and hence consumption. 80b. An economy grows if: a. labor expands at a more rapid pace than capital. b. capital expands at a more...
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b)...
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b) Decrease taxes, buy government bonds c) Decrease taxes, lower the reserve ratio d) Decrease government spending, lower the discount rate e) Increase government spending, raise the discount rate Use the IS-LM model. Your policy instruments are: Taxes, Government Spending, and the Money Supply. Describe a policy or set of policies that achieve the following objectives. Your answer should include a diagram to show how...
Which of the following would increase output in the short run? A. An increase in stock...
Which of the following would increase output in the short run? A. An increase in stock prices makes people feel wealthier B. Government spending increases C. Firms chose to purchase more investment goods D. All of the above are correct
Which of the following would be an example of an automatic stabilizer?
Which of the following would be an example of an automatic stabilizer? The increase in unemployment benefits during a recessionary gap The Fed buying bonds during a recessionary gap The increase in social security benefits as the population ages The government increases expenditures during times of war The government increasing taxes during an inflationary gap
Which of the following would reduce the natural rate of unemployment? a. an increase in the rate of money growth but not increased unemployment compensation b. an increase in unemployment compensation but not an increase in the rate of money growth. c. neither an increase in unemployment compensation nor an increase in the rate of money growth. d. both an increase in the rate of money growth and increased unemployment compensation
Related to the Economics in Practice Federal government expenditures and receipts for the simple economy of the nation of Topanga are listed in the table below. The government of Topanga would like to reduce the debt-to-GDP ratio, and the Finance Minister of Topanga has proposed the following: "The best way to reduce the debt-to-GDP ratio is to increase GDP, because with a larger GDP, the ratio will have to get smaller. I therefore propose that government expenditures be increased by...
_lag. The lag between an increase in government spending and the impact of this increased spending on the economy is called the a. effectiveness b.transmission C. legislative d. data QUESTION 49 Complete crowding out implies that as government increases purchases by $1, a. private spending decreases by $1. b. Real GDP remains unchanged. c. there is an equal offsetting decrease in one or more of the components of private expenditures. d. all of the above e none of the above...
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b) Decrease taxes, buy government bonds c) Decrease taxes, lower the reserve ratio d) Decrease government spending, lower the discount rate e) Increase government spending, raise the discount rate Use the IS-LM model. Your policy instruments are: Taxes, Government Spending, and the Money Supply. Describe a policy or set of policies that achieve the following objectives. Your answer should include a diagram to show how...
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