Assume that the government tries to reduce unemployment by increasing government spending. Which of the following unwelcome effects is not a side effect of this measure?
a. Lower overall (private plus government) borrowing in the real credit market
b. Rising budget deficits.
c. Increased real risk-free interest rate
d. Higher inflation rates.
e. Crowding out.
.A
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What will be an ideal response?
Explain why the marginal cost curve intersects average total cost at the point of minimum average total cost.
What will be an ideal response?
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
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In the short run, it is necessary to ________ a good whenever excess demand exists.
A. nonprice ration B. discontinue distribution of C. price allocate D. increase production of