Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant, the release of the CPI report would immediately cause the demand for U.S

For any given change in taxes, the multiplier

a. will work indirectly through consumption. b. effect will occur in two steps. c. effect will be smaller than for an equivalent dollar change in government spending. d. All of the above are correct.

Which of the following is not a valid argument against labor market deregulation?

a) deregulation produces income inequality b) deregulation reduces wages c) deregulation leads to crime d) active labor market spending may be equally or more effective at reducing unemployment than deregulation e) deregulation restricts employer choices