Q1. Michael Vincent and Elizabeth Matthews, economists at Macro Associates, conduct research into the effects of fiscal policy on the economy. Vincent states that government taxing decisions affect the supply of labor. Matthews contends that government taxing decisions affect potential GDP. Regarding their statements, Vincent and Matthews are: Vincent Matthews
A) Correct Incorrect B) Correct Correct C) Incorrect Correct
Q2. Edmund Jones, an economist, recommends that the federal government consider reducing its budget deficit during a recession by raising income taxes with no other fiscal policy changes. Jones’ income tax increase recommendation will most likely have the following effects on the supply of labor and on potential GDP? Supply of labor Potential GDP
A) Increase Decrease B) Decrease Increase C) Decrease Decrease
Q3. When potential real GDP is less than actual real GDP, the economy is most likely experiencing: A) recession. B) underemployment. C) inflation.
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发表于 2009-1-15 16:25
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