If a large number of people are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is lower than the true unemployment rate.

Ramey found that a deficit-financed temporary increase in government purchases has a multiplier in the range of

A. 0.8 to 1.5. B. 0.0 to 0.2. C. 0.2 to 0.8. D. 1.5 to 2.2.

The recognition lag is generally of equal duration for both fiscal policy and monetary policy.

Answer the following statement true (T) or false (F)