Transfer payments are government grants, subsidies, or gifts to individuals or firms.
What will be an ideal response?
Examples of transfer payments include unemployment insurance and Social Security payments, payments of interest to holders of government bonds, and subsidies to, for example, energy or agricultural corporations.
Economics
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Refer to above figure. Would you expect to find that the real wages become equalized in both countries? Explain the reason for any differences you note
What will be an ideal response?
Economics
Despite an expansionary monetary policy, an economy experiences a recession. Everything else held constant, the recession could occur in spite of the rightward shift of the LM curve if
A) consumer confidence decreases sharply. B) there is an investment boom. C) the money supply increases. D) taxes are cut.
Economics