If the economy in the graph shown is currently at point B, and the government increases its spending, the likely outcome will be that the:
A. economy will increase its level of output.
B. economy will experience deflation.
C. economy's unemployment rate will increase.
D. All of these are likely to be true.
A. economy will increase its level of output.
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What is meant by the marginal tax rate?
A) The highest rate that can be extracted. B) The lowest rate that will still meet the government's revenue requirements. C) The percentage of additional income that is taken by taxes. D) The rate paid by businesses that are just barely able to survive.
A legal maximum on the price at which a good can be sold is called a price a. floor
b. subsidy. c. support. d. ceiling.
The equation, Unemployment rate = Natural rate of unemployment - a × (?ctual inflation - Expected inflation),
a. is the equation of the short-run Phillips curve. b. implies there can be no stable short-run Phillips curve. c. reflects the reasoning of Friedman and Phelps. d. All of the above are correct.
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one car is ________ pounds of cheese.
A. 1/250 B. 20 C. 1/20 D. 250