If the economy in the graph shown is at point D, and the government wished to bring the economy back to its long-run equilibrium, it might:
A. increase government spending.
B. decrease income taxes.
C. increase corporate income taxes.
D. All of these would bring the economy back to potential GDP.
C. increase corporate income taxes.
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The biggest wave of bank failures in the U.S. occurred:
A) during the Great Depression. B) before the Great Depression. C) during 2007 to 2009. D) in the early 1990s.
A political leader suggesting that the country "stay the course" in the face of an economic downturn because things will be potentially made worse if tax and spending policies are adopted, is, by implication, suggesting ________ is better.
A. Discretionary Fiscal Policy B. Trade policy C. Regulatory changes D. Nondiscretionary Fiscal Policy
What kind of costs remain the same regardless of the level of production?
A. Total B. Fixed C. Marginal D. Variable
If the consumption of a good yields external benefits, then
A. The social demand is greater than the market demand. B. The social demand is less than the market demand. C. The social demand is equal to the market demand. D. There is neither social demand nor market demand for the good.