During a recession:
a. Government spending automatically rises and taxes automatically rise.
b. Government spending automatically falls and taxes automatically rise.
c. Government spending and taxes automatically fall.
d. Government spending and taxes do not tend to change.
e. Government spending rises automatically and taxes fall automatically.
.E
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According to the authors of your text,
A) society could continue to exist even if people were totally selfish. B) genuine concern for the well-being of others is essential if any social cooperation at all is to occur. C) anarchism, or a society without a coercive government, is the only socio-political system consistent with free markets. D) rules are necessary for government institutions, but not for market institutions.
Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point directly to the left of it. Assuming that the PPF has not shifted, this could be due to
A) a gain of resources. B) a loss of resources. C) technological improvement in the production of both goods. D) a new law that interferes with productive efficiency.
Other things being equal, an increase in the number of sellers of a good will __________________ for that good.
A. increase equilibrium price and quantity B. increase equilibrium price and decrease equilibrium quantity C. decrease equilibrium price and increase equilibrium quantity D. decrease equilibrium price and quantity E. increase demand
Commercial banks are able to create money because
What will be an ideal response?