The tradeoffs and connections between the goals of macroeconomics may be ___________ in the short run and the long run.

Answer the following statement(s) true (T) or false (F)

1. If the mpc is 0.8 and government spending increases by $10 billion, equilibrium Y will increase by $50 billion. 2. Decreasing taxes is an example of expansionary fiscal policy. 3. Most of the U.S. government debt is owed to foreign countries. 4. The HDI is an index of well-being. 5. The deficit is the sum of yearly government debts since 1776.

The government wants to reduce white-collar crime. a. Suppose for the moment innocent people are never wrongly convicted of a crime

Explain why the Becker model of crime and punishment suggests that we increase the fines people pay if they are convicted instead of hiring more people to investigate white-collar crime. b. Now suppose that mistakes happen and innocent people are sometimes convicted of white-collar crime. Why in this case might we want to hire more investigators instead of raising fines? What role does equity or fairness play in this case?