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44. All other things remaining the same, a new fiscal stimulus package normally can be expected to: (a) result in a net drop in national

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44. All other things remaining the same, a new fiscal stimulus package normally can be expected to: (a) result in a net drop in national income and lower interest rates; (b) be financed by a tax increase of equal magnitude; (c) shift the IS curve to the right to a new equilibrium with higher interest rates and higher national income; (d) be financed by a spending decrease of equal magnitude. 45. From which of the following would you be LEAST LIKELY to derive inflation expectations? (a) the spread, or gap, between actual and potential (sustainable) real GDP; (b) changes in unit labor costs; (c) sustained growth rates in the money supply relative to growth in real GDP; (d) imbalances in fiscal policy and net exports. 46. Coincident indicators, such as the Index of Industrial Production: (a) remind us that economic activities occur simultaneously, based on luck (coincidence) and exogenous factors mainly; (b) provide a current perspective on some aspect of economic activity; (c) foretell what is may happen in the economy; (d) no longer are calculated and reported by the Federal Reserve. 47. The sustained decline in U.S. inflation rates over the past quarter century likely reflects all of the following, except: (a) a combination of digitalization and technological advances that reduce production costs; (b) a weak U.S. dollar in foreign exchange markets; (c) more exact production processes; (d) globalization. 48. The U-3 unemployment rate measures the share of the labor force that is: (a) out of work and seeking employment actively; (b) employed part-time though seeking full-time employment; (c) out of work and either younger than age 16 or older than age 55; (d) no longer seeking employment and is counted as a "discouraged worker." 49. All other things being equal, investment finance typically comes from: (a) issuance of new shares of stock; (b) borrowing from banks, venture capitalists and investors; (c) use of retained earnings: (d) all of I SO. Which of the following is a standard assumption of most growth models? (a) all investment should go strictly toward replacing depreciated capital goods; (b) there is a diminishing marginal return to capital investment; (c) investment funding is best spent on industries with the weakest productivity growth in order to bring them up to speed; (d) capital investment is the only truly important source of real economic growth. the above

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