Joe Doakes is running for reelection. Economic theory predicts he has a strong incentive to
A) heavily discount the value of all future costs of his policies.
B) try to provide as many benefits to his constituents as possible prior to the next election day.
C) do both A and B above.
D) do none of the above.
C
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All types of unemployment are harmful to the economy
a. True b. False
The current surplus of the Social Security system is expected to become a deficit sometime around 2018 because the
a. payroll tax rate is scheduled to decline at that time. b. number of workers relative to the number of Social Security recipients will decline as the baby boom generation moves into the retirement phase of life. c. stock market is not expected to perform nearly as well during the next two decades as was the case during the 1980s and 1990s. d. growth rate of the U.S. economy is expected to slow during the next two decades.