Why wasn't the stimulus passed in 2009 effective in reducing unemployment during the recession of 2009-10?
A) Congress cut the size of the final package, it was skewed toward tax cuts, and it was only 25% of the amount needed to restore GDP to full employment.
B) The administration mismanaged it—and it was much too large.
C) Fiscal policy is ineffective in a liquidity trap.
D) Tax cuts and interest rate cuts would have been effective, but they were politically undesirable.
Ans: A) Congress cut the size of the final package, it was skewed toward tax cuts, and it was only 25% of the amount needed to restore GDP to full employment.
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It is conventional to divide the nation's total production into four categories. Name and explain the four categories. In the United States, which category accounts for the largest share and the smallest share of the nation's total production?
What will be an ideal response?
In the United States, imports have exceeded exports in every year since 1960
a. True b. False