Suppose the government wants to maintain a balanced budget. To achieve this goal, when the economy falls into recession government would need to ________ taxes, which would cause aggregate demand to ________
A) increase; decrease B) decrease; increase C) decrease; decrease D) increase; increase
A
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Total costs increase from $1500 to $1800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. FC = $100 b. MC=300 c. MC=30 d. FC = $400
The sharp reduction in marginal tax rates during the 1980s
a. reduced the incentive of high-income Americans to work. b. increased the incentive of high-income Americans to utilize tax shelters. c. increased the unemployment rate of high-income Americans. d. increased the visible income of high-income Americans.
Refer to the graph below. The slope of the line tangent to the curve at point A is:
A. 0
B. .5
C. 2
D. 4
The set of fiscal policies that would be most contractionary would be a(n):
A. Increase in government spending and taxes B. Decrease in government spending and taxes C. Increase in government spending and a decrease in taxes D. Decrease in government spending and an increase in taxes