Author Question: Which of the following people would be classified as fictionally unemployed? a. Computer ... (Read 13 times)

madam-professor · **on:** Jun 30, 2018

Which of the following people would be classified as fictionally unemployed?
a. Computer programmers who lost their jobs because of a recession.
b. Construction workers who are on temporary layoff.
c. Elementary school teachers who do not have summer jobs.
d. Textile workers who lost their jobs because of new foreign competition.

Question 2

Assume that we want to drive our economy out of recession by generating a 400 billion change in real GDP. The MPC is 0.80 . Which of the following policy prescriptions would generate the targeted 400 billion change in income?
a. 120 billion increase in government spending and 50 billion increase in tax revenue.
b. 140 billion increase in government spending and 70 billion increase in tax revenue.
c. 160 billion increase in government spending and 120 billion increase in tax revenue.
d. 220 billion increase in government spending and 100 billion increase in tax revenue.
e. 400 billion increase in government spending and 300 billion increase in tax revenue.