A policy reaction function describes how the action a policymaker takes depends on:
A. the reaction of special interest groups.
B. public approval ratings.
C. the political affiliation of the policymaker.
D. the state of the economy.
Answer: D
Economics
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Monetarism is a school of thought put forth by Milton Friedman. He argued that the economy would most likely
A) be unstable. B) be at potential GDP. C) be above potential GDP. D) be below potential GDP.
Economics
If the government collects $10,000 in tax revenue and turns around and spends $10,000 to build a new road, and the MPC is 0.5, national income
a. is unchanged b. increases by $5,000 c. increases by $10,000 d. increases by $15,000 e. increases by $20,000
Economics