If government uses fiscal policy to restrain cost-push inflation, we can expect:
A. the unemployment rate to rise.
B. the unemployment rate to fall.
C. the aggregate demand curve to shift rightward.
D. tax-rate declines and increases in government spending.
A. the unemployment rate to rise.
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A society that relies on a market-based economy will always protect the natural environment.
Answer the following statement true (T) or false (F)
Relative to free trade, domestic consumers of a good are ________ off with a tariff because of the ________
A) better; higher price and greater quantity sold B) better; higher price and smaller quantity sold C) better; lower price and greater quantity sold D) worse; lower price and smaller quantity sold E) worse; higher price and greater quantity sold
Under perfect competition, if a firm is suffering a loss,
a. MR exceeds ATC. b. AR equals AVC. c. AR equals ATC. d. AR is less than ATC.
According to the relationship represented by the consumption function, governments can indirectly decrease consumption spending by
A. increasing taxes. B. decreasing transfers. C. decreasing taxes. D. decreasing government spending.