Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
What distinguishes the nonaccelerating inflation rate of unemployment (NAIRU) from the natural rate of unemployment?
Suppose that economists were able to use U.S. economic data to demonstrate that the rational expectations hypothesis is true.
Identify which of the following situations currently faced by international investors are examples of adverse selection and which are examples of moral hazard.
Evaluate whether the government's $1 billion expenditure is actually likely to push U.S. real GDP above the level it would have reached in the absence of the go
Explain how time lags in discretionary fiscal policymaking could thwart efforts of Congress and president to stabilize real GDP in face of an economic downturn.
In fact, however, neither real GDP nor the price level changes significantly as a result of the tax cut. What might account for this outcome?
If total autonomous spending declined by $200 billion in response to the increase in the price level what is the marginal propensity to consume in this economy?
What is the most likely shortrun effect on this nation's economy if there is a significant downturn in economic activity in other nations around the world?
What are the short-run effects on equilibrium real GDP and the equilibrium price level?
What are two factors that can cause the nation's real GDP to increase in the short run?
Use an appropriate aggregate demand and aggregate supply diagram to explain what happens to equilibrium real GDP and to the equilibrium price level.
What determines how much real GDP responds to changes in the price level along the short-run aggregate supply curve?
Assume that the multiplier in a country is equal to 4 and that autonomous real consumption spending. What is the current value of real consumption spending?
The marginal propensity to consume is 0.75. What is the level of real GDP at the new point on the aggregate demand curve?
What is the marginal propensity to save? What was the amount of the change in autonomous expenditures generated by the decline in the price level?
Another year and a half elapses following passage of the government spending boost. Provide a possible explanation for this outcome
Loans would often be repaid using the stones. In what ways did these stones function as money?
He says that this is how much the government could receive from increasing taxes on the rich. What is the major fallacy in such calculations?
If foreign residents desire to purchase the bonds, what is the most important source of dollars to buy them?
Explain how each of the following will affect the net public debt, other things being equal.
What happens to the net public debt if the federal government operates next year with a budget deficit, balanced budget and budget surplus?
Assume that the Ricardian equivalence theorem is not relevant. Explain why an income-tax-rate cut should affect short-run equilibrium real GDP.
Assuming that there are no direct expenditure offsets to fiscal policy, how much should the government increase taxes?
Assuming that there are no direct expenditure offsets to fiscal policy, how much should the government increase its expenditures?
During the late 1970s, prices quoted in terms of the Israeli currency. In what way did the U.S. dollar function as money in Israel during this period?