Professor Cowen says that fiscal policy would make more sense if we:
A. relied more heavily on tax cuts than we currently do for fiscal policy.
B. ran government budget deficits in years in which the unemployment rate was high.
C. used a combination of tax cuts and increases in government spending.
D. actually had government budget surpluses in years in which the economy was in good health.
Ans: D. actually had government budget surpluses in years in which the economy was in good health.
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Which of the following statements is true?
A) In the short run, a firm can vary all its inputs. B) In the long run, a firm cannot vary any of its inputs. C) Short-run cost curves lie above long-run cost curves. D) Short-run cost curves lie below long-run cost curves.
The size of the underground economy as a percent of GDP is larger in the United States as compared to poorer countries such as Zimbabwe
Indicate whether the statement is true or false