How feasible would it have been for the U.S. president and/or Congress to use fiscal measures to combat the 1990–1991 recession?
What will be an ideal response?
Since the government already faced record high deficits and a large national debt, it would have been very difficult to use fiscal measures to prevent or alleviate that recession. Because most fiscal measures would add substantially to the existing deficit and national debt, they would meet resistance from many sources. And Congress had passed a deficit reduction package in November 1990. This means that the government would have had to rely heavily on monetary measures to prevent or alleviate a recession.
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The producer price index tracks the prices firms receive for goods and services at all stages of production
Indicate whether the statement is true or false
Refer to the above figure. Suppose there are L4 workers in the union. If the union wants to set a wage rate of W3, it must
A) determine which of its members will earn W3 and which will earn W1. B) accept that L4 - L2 members will not be able to find work in the industry. C) accept that L3 - L2 workers will have to get a lower wage equal to W2 and L4 - L3 workers will have to get a wage of W1. D) determine the most efficient way to get the firms to accept the wage and hire all L4 workers.