If the federal government brings in $3 trillion in tax revenues and spends $4 trillion, the government has a budget:
A. surplus of $1 trillion.
B. deficit of $1 trillion.
C. surplus of $7 trillion.
D. deficit of $0.75 trillion.
B. deficit of $1 trillion.
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In the figure above, the equilibrium market price is $20. The producer surplus equals
A) $20. B) $1,500. C) $3,000. D) 150. E) $4,500.
What economic conditions are relevant in managerial decision making?
What will be an ideal response?
If the economy experiences inflation and economic growth, this means that aggregate demand grows by more than aggregate supply.
Answer the following statement true (T) or false (F)
Tax cuts
a. can easily target investment spending, but investment spending falls by only a small percentage during recessions. b. can easily target investment spending, which falls by a large percentage during recessions. c. cannot easily target investment spending, but investment spending falls by only a small percentage during recessions. d. cannot easily target investment spending, which falls by a large percentage during recessions.