| | sticky wages and prices Question 56 For a given increase in government spending growth, intertemporal substitution is more widespread when | | the impact of AD growth on both inflation and real GDP growth is stronger. | | | the impact of AD growth on both inflation and real GDP growth is weaker. | | | the impact of AD growth on inflation is stronger and the impact of the AD growth on real GDP growth is weaker. | | | the impact of AD growth on inflation is weaker and the impact of AD growth on real GDP growth is stronger. | Stalin: | | instituted democratic reforms, leading to widespread prosperity. | | | took government control of the farms in Ukraine, leading to the starvation of millions of people. | | | increased the provision of public goods, which had a positive effect on lowering the unemployment rate. | | | tried unsuccessfully to expand voting rights in 1924 Russia. | 1 points Question 60 1 points Question 59 If voters care about two issues such as taxes and war, then politicians: | | will form a stable policy on these issues. | | | can pose a policy that will never lose against another policy. | | | must assume that there is no median voter. | | | may never converge on a stable outcome. | 1 points Question 58 Policy A adversely affects 50 million people at a cost of $1 per person. But Policy A also benefits 1,000 people at $30,000 per person. Which of the following statements is true? | | Policy A will not become law because it hurts more people than it helps. | | | Policy A concentrates all the costs among a small group of people and all the benefits among a large group of people. | | | Policy A is likely to be supported by politicians even though it makes society worse off. | | | Since Policy A negatively affects many people, and so rational ignorance will not be a problem. | 1 points Question 57 Data for the United States show that the incumbent party tends to win the election if: I. personal disposable income is growing. II. the inflation rate is low. III. the political party has not been in power for too many continuous terms. | | I only | | | I and II only | | | I and III only | | | I, II, and III | |