What have been the poverty trends in the past forty-five years?
What will be an ideal response?
The poverty rate has varied over time. In 1959, about 25 percent of the population was classified as poor but it dropped considerably over the next decade to about 11 to 13 percent. It remained in the 11 to 13 percent range during the 1970. In the early 1980 it increased to 15 percent, dropped slightly during the rest of the 1980 and early 1990 and then increased to 14 percent in 1993. It dropped to about 11 percent in 2000, but rose to 11.7 percent in 2001 because of recession, and rose to 12.3 percent in 2006 because of relatively slow wage growth. The Great Recession that began in December 2007 increased the poverty rate for all groups.
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Excess reserves
What will be an ideal response?
Within the Keynesian aggregate expenditures model, which of the following autonomous changes would decrease the equilibrium output?
a. A decrease in investment spending. b. An increase in net exports. c. An increase in government spending. d. An increase in consumption expenditures