Which of the following should be increased during a recession?
A) Income taxes B) Government spending
C) Real interest rates D) Nominal interest rate
B
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The practice of setting price by increasing the average costs of production by some percentage is referred to as:
A) average cost pricing. B) percentage pricing. C) rate-of-return pricing. D) markup pricing.
Economic goods are
A) abundant goods, about which we must constantly make decisions about their best use. B) all imaginable items from which individuals derive satisfaction or happiness. C) goods that are scarce, for which the quantity demanded exceeds the quantity supplied at a zero price. D) goods that are scarce, for which the quantity demanded exceeds the quantity supplied at any price.
In utility analysis, it is assumed that marginal utility diminishes as consumption of a product decreases
a. True b. False Indicate whether the statement is true or false
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A