During a recession, tax revenues ________ while government transfer payments ________, thereby mitigating part of the adverse effects of a recession and stabilizing the economy
A) fall; decrease B) fall; increase C) rise; decrease D) rise; increase
B
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Cartel members have an incentive to cheat on the cartel because:
a. the cartel does not maximize profits. b. the cartel price is the competitive price. c. each member's output quota is too high. d. each member's MR is not equal to the cartel's MC. e. the industry profit would be higher under competitive conditions.
Which of the following is true? a. Real GDP equals nominal GDP divided by the current price level index, times one hundred
b. In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth. c. In a country with a growing population, real GDP could be falling at the same time that real GDP per capita was rising. d. Marrying one's housekeeper would leave reported GDP unchanged.
Exhibit 6-3 Unemployment categories CategoryWorkers Frictional unemployment250 Structural unemployment350 Cyclical unemployment600 Discouraged workers400 Underemployment450 According to data in Exhibit 6-3 and assuming the total number of workers is 8,400, the civilian labor force is:
A. 7,550. B. 8,000. C. 8,400. D. 8,800.
Similarly to the Latin American region, the high-growth Asian economies experienced a Lost Decade in the 1980s
Indicate whether the statement is true or false