If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when the
A. unemployment rate is low.
B. economy's MPS is large.
C. economy's MPC is large.
D. economy's MPC is small.
Answer: C
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Suppose you are the manager of Sweet Aroma, a firm that specializes in air freshener. To make your air freshener, you purchase apple skins from apple juice manufacturers. If the demand for apple juice decreases, this will cause the production of apple skins to ________ and the price of apple skins to ________.
A) decrease; rise B) increase; rise C) decrease; fall D) increase; fall
The urban consumers that the CPI is based on includes:
A. bank tellers. B. greeters at Walmart. C. retired persons. D. All of these are included.
Real expenditures on Medicare and Medicaid
a. rose during the 1970s and 1980s, but they have been declining since 1990. b. fell during the 1970s and 1980s, but they have been increasing since 1990. c. increased at about the same rate as real GDP during the last three decades. d. have approximately doubled during each of the last three decades.
Cap-and-trade programs limit pollution by selling firms a fixed amount of permits to pollute.
Answer the following statement true (T) or false (F)