Countercyclical fiscal policy can
a. only be employed in reaction to an existing recession
b. only be employed in reaction to an existing boom
c. be employed to prevent a potential recession or boom or in reaction to an existing recession or boom
d. only be employed to prevent a potential boom
e. only be employed to prevent a potential recession
C
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The equilibrium effects of a prospective future increase in total factor productivity include
A) an increase in the real wage and an increase in the real interest rate. B) an increase in the real wage and a decrease in the real interest rate. C) a decrease in the real wage and an increase in the real interest rate. D) a decrease in the real wage and a decrease in the real interest rate.
Subjective probabilities are based on ________ and ________ data.
A) best estimates; not on B) relative frequencies; not on C) relative frequencies; on D) best estimates; on