When the economy enters a recession, automatic stabilizers create:
a. more discretionary spending.
b. higher taxes.
c. budget deficits.
d. budget surpluses.
c
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To determine the equilibrium price level and equilibrium level of real GDP, the aggregate demand and aggregate supply must
A) be considered as a multiplier. B) be disregarded. C) be considered separately. D) intersect.
An economy is experiencing a recession and policy makers are considering using discretionary fiscal policy to eliminate the recessionary ga
What will be an ideal response?
A group of firms that has entered into an agreement to restrict output and increase prices and profits is called
A) a compliance. B) a cartel. C) an oligopoly. D) a duopoly. E) a multi-firm monopoly.
Changes in the macro environment affect individual firms and industries through the microeconomic factors of demand, production, cost, and profitability
Indicate whether the statement is true or false