Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
Do you support a constitutional amendment to prohibit federal government from imposing any trade barriers, such as tariffs and quotas, except in case of war?
Suppose you are a farmer. Explain why you would be motivated to work in traditional, command, and market economies.
What is the difference between industrially advanced countries (IACs) and less-developed countries (LDCs)? List five IACs and five LDCs.
How does external financing help poor countries achieve economic growth and development?
What are the primary tax revenue sources at the federal, state, and local levels of government?
Explain why federal, state, and local expenditures account for about 40 percent of GDP but total government spending (G in GDP) is only about 20 percent of GDP.
Assume you are a supply-side economist who is an adviser to the president. If the economy is in recession, what would your fiscal policy prescription be?
What is the difference between discretionary fiscal policy and automatic stabilizers? How are federal budget surpluses and deficits affected by the business cyc
By how much do you believe Congress must increase government spending to restore the economy to full employment?
Explain how discretionary fiscal policy fights recession and inflation. How does each of the following affect the aggregate demand curve?
In the first quarter of 2009, aggregate demand decreased to $11.3 trillion, and the price level rose to 213. Draw a graph of this recession.
Explain demand-pull inflation graphically using aggregate demand and supply analysis. Assess the impact on the price level, real GDP, and employment.
Identify the three ranges of the aggregate supply curve. Explain the impact of an increase in the aggregate demand curve in each segment.
Explain the theory of the classical economists that flexible prices and wages ensure that the economy operates at full employment.
Currently, full employment is on the order of 5 percent unemployment. What is the major factor accounting for this rise?
What is the relationship of frictional, structural, and cyclical unemployment to the full-employment rate of unemployment, or natural rate of unemployment?
Describe the relevant criteria that government statisticians use to determine whether a person is unemployed.
Excluding members of armed forces and persons in institutions, and assuming the figures include only civilian workers, calculate the civilian unemployment rate.
Assume an economy operates in the intermediate range of its aggregate supply curve. What is the effect on the price level? On real GDP? On employment?
Why does a reduction in taxes have a smaller multiplier effect than an increase in government spending of an equal amount?
Suppose you deposit your paycheck drawn on another bank. Explain the impact on the money supply.
In what form does a bank hold its required reserves? Assume the Fed has a 20 percent required reserve ratio.
What backs the U.S. dollar? Include the distinction between commodity money and fiat money in your answer.
Suppose you are the economic policy adviser to the president and are asked what should be done to eliminate a federal deficit. What would you recommend?
Suppose the percentage of the federal debt owned by foreigners increases sharply. Would this trend concern you? Why or why not?