Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

Related Mcqs:

Economic models are ?

A. Usually made of wood and plastic B. built with assumptions. C. useless if they are simple. D. created to duplicate reality....

In which of the following cases is the assumption most reasonable ?

A. To address the impact to taxes on income distribution an economist assumes that everyone earns the same income. B. To address the impact of money growth on inflation, an economist assumes that money is strictly coins. C. To model the benefits of trade. an economist assumes that there are two people and two goods … In which of the following cases is the assumption most reasonable ?Read More...

Which of the following is most likely to produce scientific evidence about a theory ?

A. A lawyer employed by Renault addressing the impact of air bags on passenger safety. B. An economist permanently employed at a leading university analyzing the impact of bank regulations on lending to small businesses C. An economist employed by the Trades union congress doing research on the impact of trade policy on workers’ wages … Which of the following is most likely to produce scientific evidence about a theory ?Read More...

Which of the following statements is normative ?

A. Large government deficits cause an economy to grow more slowly B. People work harder if the wage is higher C. The unemployment rate should be lower D. Printing too much money causes inflation...

Positive statements are ?

A. Macroeconomic B. Microeconomics C. statements of description that can be tested D. Statements of prescription that involve value judgments....