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Which of these statements is (are) true? I. At full employment, expansionary fiscal policy results in an increase in aggregate demand, increasing output temporarily above full employment. II. When the government runs a deficit, it must sell bonds. III. When the federal government spends more than tax revenues permit, it can sell bonds only to foreigners.

Discretionary fiscal policy requires action from Congress.

Increased productivity leads to increased aggregate supply.

Mandatory spending as part of the federal budget has been growing since the 1960s.

The fact that automatic stabilizers work without having Congress or the president explicitly intervene is a major disadvantage.

If you were not studying economics, you could be doing one of these: sleeping in (which you value at $5), playing cards with your friends (which you value at $10), or working (you would have earned an extra $8). The opportunity cost of studying economics is therefore:

Yun quits his job in Topeka, Kansas, and moves to Austin, Texas, to get involved in live music. He is unemployed for three months while he looks for a new job. Yun is frictionally unemployed.

Which of these BEST illustrates the wealth effect?

A theory composed of a number of assumptions and facts boiled down to their basic relevant elements is called a:

Suppose in 2010 the cost of purchasing a basket of goods was $100. That same basket cost $150 in 2011. If 2010 is the base year, the consumer price index for 2011 is: