An example of an automatic stabilizer is
A) unemployment compensation.
B) a newly enacted surtax to slow down an overheated economy.
C) a horizontal aggregate supply curve.
D) a change in the marginal tax rates.
A)
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Based on the figure above, curve A is the firm's
A) marginal cost curve. B) total cost curve. C) average total cost curve. D) total variable cost curve. E) total fixed cost curve.
Assume that a firm's production process is subject to increasing returns to scale over a broad range of outputs. Long-run average costs over this output will tend to
A) increase. B) decline. C) remain constant. D) fall to a minimum and then rise.
If the marginal propensity to consume is 0.5, the income tax rate is 10%, and income rises by $20,000 . by how much will consumption spending increase?
a. $15,000 b. $10,000 c. $5,000 d. $9,000 e. $1,000
The Kuznets cycle, named for Nobel Laureate Simon Kuznets who developed this business cycle theory, focuses on
a. the climatic cycles caused by movements in the solar system b. the impact of war activity on the economy c. housing construction d. the clustering of innovations e. the interaction of the multiplier and the accelerator