Which of the following best illustrates the use of discretionary countercyclical fiscal policy?
a. Congress provides $90 billion in relief aid for hurricane victims.
b. Congress appropriates $50 billion to help the needy, and the appropriation is financed by a tax on wealth.
c. Income tax receipts are smaller because of a decline in real GDP during a recession.
d. Congress passes a bill authorizing $100 billion in additional spending when it receives news of a deepening recession.
D
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In the 1960s, advocates of the Phillips curve suggested ________
A) an "optimal" goal of 1% unemployment and 1% to 2% inflation rates could be achieved B) a "realistic" goal of 7% unemployment and 6% to 7% inflation rates could be achieved C) a "nonperfectionist" goal of 3% unemployment and 4% to 5% inflation rates could be achieved D) all of the above E) none of the above
Consider a consumer of baked beefsteaks and fried fish fillets. Suppose the price of a plate of baked beefsteak is $8 and that of fried fish fillets is $10 at a restaurant. If the marginal utility of baked beefsteak to the consumer is 20 units, compute the marginal utility of fried fish fillets, assuming that the consumer is in equilibrium
a. 12 units b. 20 units c. 25 units d. 80 units