One way the government can boost the economy out of a recession is:

A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.


Answer: B

Economics

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A horizontal demand curve shows that demand for a good is _____

a. perfectly inelastic b. moderately inelastic c. unit-elastic d. moderately elastic e. perfectly elastic

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Suppose the real interest rate in the economy is 3% and the nominal interest rate is 6%, what is the current inflation rate?

a. 18% b. 9% c. 2% d. 3% e. 2.5%

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A highly oligopolized industry would have a ______ Herfindahl-Hirschman Index and a ______ concentration ratio.

A. high; high B. low; low C. high; low D. low; high

Economics