If policymakers are concerned that the economy is in danger of rising inflation because aggregate demand is increasing faster than aggregate supply, the appropriate fiscal policy response is to
A) increase government spending. B) increase taxes.
C) increase interest rates. D) use expansionary fiscal policy.
B
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In the figure above, which of the following transactions take place in the factor markets?
i. Michael, a student, orders a computer from Dell online. ii. Peter gets a job at a Wal-Mart store. iii. Apple Computer opens a new store in Georgia A) ii and iii B) only i C) only ii D) only iii E) i and ii
Comdex Computer Company is producing at a price of $10 with an average total cost of $12and a fixed cost of $300 . The firm is currently producing 100 units
What are the operating profits of this firm? What are the economic profits of this firm?
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. An accountant would calculate the total profit for one birdhouse to be
a. $7. b. $11. c. $12. d. $15.
Tranching makes it so that packages of reliable, low-risk mortgages could be sold to ________, while higher-risk subprime mortgages could be sold to ________.
A. more risk-loving investors; risk-averse investors B. more risk-averse investors; risk-loving investors C. national banks; local banks D. local banks; the government