1 All but one of the following are characteristics of shortterm economic fluctuations Which is the


1.All but one of the following are characteristics of short-term economic fluctuations. Which is the


Select one:

a. Unemployment rises during recessions

b. Expansions and recessions are irregular in length and severity

c. Durable-goods industries are more sensitive to short-term fluctuations than service and non-durable industries

d. Expansions and recessions are fe in only a few sectors of the economy

2.Changes in taxes and transfers affect planned spending:

Select one:

a. directly

b. by changing disposable income and, consequently, consumption

c. only when there is an expansionary gap

d. autonomously

3.Supply-siders are considered to be supporters of the need for tax cuts to encourage people to:

Select one:

a. work harder and spend more on innovations

b. work harder, save more and innovate

c. spend more and work in the IT industry

d. innovate and save money

4.In the short-run Keynesian model, to close a recessionary gap of $10 billion, taxes must be:

Select one:

a. increased by $10 billion

b. increased by less than $10 billion

c. decreased by $10 billion

d. decreased by less than $10 billion