If government expenditures exceed tax receipts then, other things being constant
A. a surplus exists.
B. a balanced budget exists.
C. the public debt will rise.
D. the deficit becomes smaller.
C. the public debt will rise.
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Describe the two things that limit the precision of the Fed's control of the money supply and explain how each limits that control
As real GDP falls,
a. money demand rises, so the interest rate rises. b. money demand rises, so the interest rate falls c. money demand falls, so the interest rate rises. d. money demand falls, so the interest rate falls.
Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product.
For a monopolist facing this demand curve, the profit-maximizing quantity is ________ and the profit-maximizing price is ________.
A. 50; $3 B. 100; $1 C. 50; $2 D. 100; $2
The central difference between the structural stagnation hypothesis and the secular stagnation theory is that:
A. structural stagnation applied in the 1940s, and secular stagnation applies today. B. structural stagnation focuses on globalization, while secular stagnation focuses on declining investment. C. structural stagnation focuses on declining investment, while secular stagnation focuses on globalization. D. structural stagnation is a hypothesis, while secular stagnation is a theory.