How might fiscal policy be used to correct an inflationary gap?
A. The exchange rate would be adjusted to discourage imports.
B. The exchange rate would be adjusted to encourage imports.
C. Government spending would be adjusted to reduce consumer spending.
D. Business operations would be regulated by the government to become more efficient.
Answer: C
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Economic theory indicates that the amount consumed of a natural resource depends on
a. the price of the resource. b. consumer income. c. the price of substitute resources. d. all of the above.
Foreign ownership of debt has decreased the burden of the debt on future generations of Americans absolutely and relatively
Indicate whether the statement is true or false
Which of the following predictions is consistent with public choice theory?
A) Voters will sometimes cast votes based on whether they like a candidate's personality, not on hard facts. B) Many voters will be uninformed on political and government issues. C) Much legislation will be special interest legislation. D) b and c E) a, b, and c
Refer to the information provided in Figure 15.6 below to answer the question(s) that follow.
Figure 15.6Refer to Figure 15.6. If Trollio?s T-shirts is producing the quantity where MR = MC and selling each T-shirt at the price where D = ATC, then in the long run this firm should ________ the selling price and ________ quantity.
A. increase; decrease B. decrease; increase C. not change; not change D. increase; increase