If the government wishes to increase the level of real GDP, it might reduce:
A. Taxes
B. Transfer payments
C. The size of the budget deficit
D. Its purchases of goods and services
A. Taxes
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The typical average cost curve
A. continually declines as output increases. B. is horizontal. C. continually increases as output increases. D. first declines to a minimum and then increases as output increases.
Under an infinitely inelastic supply of land, the economic rents to land ________ if the price of land doubles
A) increase by less than 100% B) double C) increase by more than 100% D) none of the above
What stage of the business cycle immediately follows the trough?
a. Peak. b. Expansion. c. Recession. d. Depression.
Which of the following observations regarding the Gini coefficient (G) is incorrect?
a. If G is one, the Lorenz curve would overlap the line of perfect income equality. b. If G is zero, it represents perfect income equality c. If G is one, it represents perfect income inequality d. The closer G is to 1 the greater the degree of income inequality