Which of the following policies would be most effective to control inflation?
A) An increase in government spending to shift aggregate demand to the right.
B) A decrease in government spending to shift aggregate demand to the left.
C) An increase in taxes to shift aggregate supply to the left.
D) None of the above would reduce inflation.
Ans: B) A decrease in government spending to shift aggregate demand to the left.
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Which of the following is true of protectionism?
A) It lowers prices for domestic consumers and increases social surplus. B) It increases prices for domestic consumers and also increases social surplus. C) It increases prices for domestic consumers and lowers social surplus. D) It lowers prices for domestic consumers and also reduces social surplus.
Average physical product measures the output per unit of input.
Answer the following statement true (T) or false (F)
Which of the following was NOT used to finance the Civil War (1861–1865)?
(a) Taxation (b) Borrowing (c) Printing money (d) Large voluntary contributions from individuals opposed to slavery
All other things constant, higher implicit cost results in lower accounting profit
a. True b. False