If the economy experiences a recession, the federal government's tax receipts will
A. decrease.
B. remain the same.
C. fall to zero.
D. increase.
A. decrease.
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Which of the following statements best describes the Phillips curve from a Keynesian viewpoint?
a. From a Keynesian viewpoint, the Phillips curve should slope down so that higher unemployment means lower inflation. b. From a Keynesian viewpoint, the Phillips curve should slope down so that lower unemployment means lower inflation. c. From a Keynesian viewpoint, the Phillips curve should slope down so that higher unemployment means higher inflation. d. From a Keynesian viewpoint, the Phillips curve should slope down so that lower unemployment means higher inflation.
In many regulated industries, marginal cost will be
A. below average cost. B. above total cost. C. above marginal fixed cost. D. below incremental cost.
The adjustment in economic policy designed to counteract small changes in economic outcomes
A. Is the concept of fine-tuning. B. Is the policy approach favored by most economists. C. Is compatible with our design capabilities. D. Has been easy to accomplish over the last decade.
Which of the following will increase macroeconomic equilibrium real gross domestic product?
A. a decrease in taxes B. an increase in input prices C. a decrease in government spending D. a decrease in productivity