Question Details

What name would economists give to hurricane and strike distortions 



1. “Business organizations are more optimistic, saying the job market is so tight employers will not part with workers for fear …….” This statement is best completed with 
a)	of inflation 
b)	of rising wages 
c)	they will lose experienced employees 
d)	of unemployment 

2. ”Economists said that even after taking hurricane and strike distortions into account, industrial production data signaled that manufacturers were bracing for tougher conditions.” What name would economists give to “hurricane and strike distortions ?” 
a)	a fall in aggregate demand 
b)	a supply-side shock 
c)	a failure of the price system 
d)	a tax hike equivalent 
3. ”Indeed, the study finds that it is quite likely that the lower rates have generated significant Laffer curve effects - meaning the government ……..” The best way to complete this statement is 
a) collects more revenue 
b) has lower borrowing costs 
c) moves towards a budget deficit 
d) can increase spending without fearing inflation 
4. ”The atmosphere is part of the economy too, the real economy that is, not the artificial construct portrayed in the GDP. It does real work, as we would discover quickly if it were to collapse. Yet the GDP does not include this work. If we burn more gas, the expenditure gets added to the GDP. But there is no corresponding subtraction for the toll this burning takes on the thermostatic and buffering functions that the atmosphere provides. Nor is there a subtraction for the oil we take out of the ground.” 
What is the main point being made here? 
a)	the real multiplier is smaller than we think 
b)	GDP measurement is misleading 
c)	“crowding out” is more important than is believed 
d)	more attention should be paid to the supply side of the economy 



Economics Assignment Help, Economics Homework help, Economics Study Help, Economics Course Help