The idea that if governments cut taxes but not spending, people will not change their behavior, and expansionary policy will have little expansionary effect is known as:
A. Ricardian equivalence.
B. Keynesian policy.
C. the invisible hand.
D. Stimulus policy.
A. Ricardian equivalence.
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A decrease in foreign income ________ exports of U.S.-made goods, so aggregate demand ________ and the aggregate demand curve shifts ________
A) increases; increases; rightward B) decreases; decreases; leftward C) decreases; increases; rightward D) increases; increases; leftward E) decreases; decreases; rightward
The law of comparative advantage applies to exchange between
a. individuals. b. regions. c. nations. d. all of the above.
When the federal government is running a budget deficit:
A. government tax revenues exceed government expenditures. B. government expenditures exceed government tax revenues. C. the economy must be in an economic recession. D. the size of the national debt will decline.
Senior citizens can buy movie tickets at a lower price than the general public. This is an example of
A) age discrimination. B) demand discrimination. C) price discrimination. D) price differentiation.