If an increase in government spending of $100 million causes an increase in aggregate spending of less than $100 million, we call this phenomenon:

Use the following equations for Aggregate Demand and Short Run Aggregate Supply to answer this question.

  According to the tax rates shown in the figure above, an individual who earns $100,000 in taxable income will pay income tax of:

In the New Keynesian model, where prices are slow to adjust, a negative shock to consumer confidence will lead to                    in the short run.

Marquez, a laid-off steel worker, has recently moved to Florida because he is looking to take classes and obtain new skills in computer programming while he looks for a job in IT. Which of the following best describes Marquez’s employment situation?

Which is the MOST effective fiscal policy to fight a recession if people react to uncertainty by saving all additional money that they earn or receive?

Which program(s) would be more directed at helping overcome frictional unemployment?

Which of the following would cause an increase in the demand for waffles?

The market is effectively able to make sure goods are produced by their lowest-cost producers because

In the early 1970s there was a dramatic increase in the price of oil. At the time, oil was a very important input into the production process for the manufacturing sector. In the New Keynesian Model, where prices are slow to adjust, we would depict this as an inward shift of the [answer1] which would result in [answer2] inflation and [answer3] GDP growth.