Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates the:
A. demand for oranges will necessarily rise.
B. equilibrium quantity of oranges will rise.
C. amount of oranges that will be available at various prices has declined.
D. price of oranges will fall.
Answer: C
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A person who works part-time is considered to be:
a. employed b. unemployed. c. out of the labor force. d. overemployed.
Which of the following is true with regard to the use of countercyclical fiscal policy as a stabilization tool?
a. Successful fiscal policy would be easy to achieve if Congress had greater access to forecasting tools. b. Successful fiscal policy is difficult to achieve because Congress acts slowly and our ability to predict the future is limited. c. Successful fiscal policy is easier to achieve today because econometric forecasting models are highly accurate. d. Congress and the President have persistently altered fiscal policy in a stabilizing manner.