According to the traditional Keynesian analysis, if the government increases spending and pays for all of it by raising current taxes, then
A. aggregate demand will increase.
B. a budget deficit will occur.
C. aggregate demand will decrease.
D. a budget surplus will occur.
Answer: A
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Which of the following is true of entrepreneurship?
a. Entrepreneurial discovery is an important source of economic growth and higher living standards. b. The role of the entrepreneur is not very important and that is why it is generally not included in economic models. c. The role of entrepreneurial discovery could be easily integrated into economic models, but nonetheless economists choose not to do so. d. Economic models are able to capture fully the important role of the entrepreneur in the market process.
Economic rent is the portion of a resource's total earnings above its opportunity cost
Indicate whether the statement is true or false
Explain the difference between comparative advantage and absolute advantage. Give an example of each.
What will be an ideal response?
Yolanda wants to expand her microbrewery business by buying out a competitor and is going to sell newly-issued corporate bonds to do so. This is an example of using ________ for her expansion plans
A) direct finance B) indirect finance C) coupon payments D) retained earnings