Which of the following macroeconomic policies are structural?
|A)||A reduction in income taxes.|
|B)||Provision of additional cash to the banking system.|
|C)||A request by a developing country to the International Monetary Fund for a loan.|
|D)||Decision by the government to cut spending.|
|E)||Decision by the central bank to raise interest rates.|
Which of the following would be considered an example of monetary policy?
|A)||A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries.|
|B)||A reduction in income tax rates.|
|C)||Provision of additional cash to the banking system.|
|D)||An attempt to reduce the government budget deficit by reducing spending.|
|E)||A decision by a developing country to reduce government control of the economy and to become more market-oriented.|
Which of the following would be studied by macroeconomists?
|A)||The effect of government subsidies on wheat prices.|
|B)||The impact of the minimum wage on families below the poverty level.|
|C)||Inflation in developing countries.|
|D)||The effect of rent controls on housing prices in Toronto.|
|E)||The anticompetitive effects of banking mergers.|
In Econland population and average labour productivity are constant. If a larger proportion of the population become employed workers, then total output will _____ and output per person will ______.
|C)||remain constant; remain constant|
|D)||decrease; remain constant|
|E)||remain constant; decrease|
In Econland population increased from 2 million to 4 million, the number of employed workers increased from 1 million to 2 million, but average labour productivity decreased from $25,000 per worker per year to $20,000 per worker per year. Total output in Econland _____ and the average standard of living _____.
|C)||increased; remained constant|
A decrease in the federal income tax is an example of ______ policy.
A decision by a government to sell businesses that currently are operated by the government to private investors is an example of ________ policy.
To aggregate 300 tonnes of steel, 5,000 bushels of wheat, and 1 million barrels of crude oil, economists add together the _____ of the three products
|E)||number of tonnes, bushels, and barrels|
Aggregation allows economists to ______ at the cost of ________.
|A)||study monetary policy issues; neglecting fiscal policy issues|
|B)||make positive statements; ignoring normative analysis|
|C)||make normative statements; ignoring positive analysis|
|D)||see the details; obscuring the big picture|
|E)||see the big picture; obscuring the details|
In Econland exports equal 25% of total output, while imports equal 20% of total output. Econland has:
|A)||a budget surplus.|
|B)||a budget deficit.|
|C)||a trade surplus.|
|D)||a trade deficit.|