Taxing pollution will encourage firms to reduce pollutants dumped in the atmosphere or in streams
a. True
b. False
Indicate whether the statement is true or false
True
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The ability to read, write, and run calculations are examples of human capital.
Answer the following statement true (T) or false (F)
A recessionary gap causes national debt to increase because
a. the growth in GDP slows. b. interest on previously incurred debt must be paid. c. recessionary periods require huge buildups of defense materials. d. income tax receipts drop off markedly.
In Zimbabwe, inflation rose from an annual rate of 32 percent in 1998 to 100,000 percent in early 2009. Considering only the effects of this unexpected inflation, which of the following groups are helped by the inflation:
A. No one; inflation hurts everyone B. People living on fixed pensions C. Debtors D. Unemployed people