c. Raising income tax rates and cutting transfer payments to the needy
d. Reducing subsidies to education and increasing subsidies to businesses for hiring
new employees
e. Increasing subsidies to education and reducing subsidies to businesses for hiring new
employees.
A key tool of countercyclical fiscal policy is
a. the interest rate
b. the federal funds rate
c. government spending
d. the regulatory code
e. Presidential executive orders
Which of the following trends would lower the unemployment rate associated with full
employment?
a. People become less educated over time.
b. More people are willing to move to find a job.
c. The government spends money to reduce the loss of jobs during a recession.
d. A larger proportion of jobs are seasonal in nature.