(Consider This) From an economist's perspective, when is government too big?
A. Government is always too big.
B. When government activity exceeds 10 percent of gross domestic product.
C. When the marginal costs from additional government spending exceed marginal benefits.
D. When the marginal benefits from additional government spending exceed marginal costs.
Answer: C
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Indicate whether the statement is true or false
Refer to the scenario above. Each firm will face a demand of ________ units of Good A if both of them charge a price of $60
A) $1,000 B) $1,500 C) $2,000 D) $3,000
A price taking firm is able to sell its product just slightly above the current market price.
Answer the following statement true (T) or false (F)
A given short-run Phillips curve shows that an increase in the inflation rate will be accompanied by a lower unemployment rate in the short run
a. True b. False Indicate whether the statement is true or false