All of the following are instruments of fiscal policy except
A) rebate on payroll taxes.
B) education tax credits.
C) unemployment insurance benefits.
D) an interest rate cut.
Ans: D) an interest rate cut.
Economics
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In the equation, GDP = C + I + G + X - M, G refers to
A) federal government expenditures plus all transfer payments. B) local, state, and federal government spending for all purposes. C) the taxes and expenditures of all government units. D) local, state, and federal government expenditure on goods and services, but does not include transfer payments.
Economics
Suppose that last year the unemployment rate was 5 percent and the inflation rate was 2.5 percent. If the natural rate of unemployment is 5 percent, how do you expect inflation to change?
What will be an ideal response?
Economics