When the economy is already operating at nearly full capacity, further fiscal or monetary stimulus will likely:
a. soften inflationary pressures in sectors already at capacity, and increasing employment in sectors with excess capacity.
b. trigger inflationary pressures in sectors already at capacity, and decreasing employment in sectors with excess capacity.
c. soften inflationary pressures in sectors already at capacity, and decreasing employment in sectors with excess capacity.
d. trigger inflationary pressures in sectors already at capacity, and increasing employment in sectors with excess capacity.
d
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Which of the following statements about transfer payments is true?
a. Transfer payments are not included in total government expenditures. b. Transfer payments involve the international remittance of funds. c. Transfer payments refer to the transfer of money by the commercial banks to the people. d. Transfer payments are made by the government to taxpayers. e. Transfer payments are made when governments purchase goods and services.
When economists describe a production process as capital-intensive, they mean that the
A. Process needs a greater emphasis on labor in order to increase productivity. B. Capital used in the process tends to wear out (depreciate) very rapidly. C. Capital used in the process reflects the most advanced technology. D. Process uses a high ratio of machinery and other capital to labor.