Answer the next question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$450$425$2,000Year 25004503,000Year 36005004,000Year 46406205,000Year 56805804,800Year 66006205,000As a percentage of GDP, the budget deficit was ________ in year 3.
A. 12.5%
B. 2.5%
C. 0%
D. 15%
Answer: B
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Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. What is Archibald's shut-down point?
A) $10.00 B) $16.67 C) $15.00 D) $12.50
During an economic slump such as the 2008 recession, what pricing strategies could a fast-food chain such as McDonald's use to maintain its sales? Use some of the concepts discussed in this chapter in your answer
What will be an ideal response?
An increase in energy prices is a likely cause of
A) Great Depression. B) Korean War inflation. C) the recession in 1973-1975. D) the Great Moderation.
According to the table shown, what can be said about the cost of living in 2012?
A. The typical consumer must spend 5 % more in 2012 than he did in 2011 in order to buy the same goods.
B. Every consumer will experience a 5 % increase in his cost of living from 2011.
C. Whatever consumers bought in 2012 cost 5% more than what they spent in 2011.
D. None of these statements is true.