Based on the table showing a summary of fiscal policy tools, the prescription for high unemployment is ______.
a. increasing aggregate demand through expansionary policy
b. decreasing aggregate demand through contractionary policy
c. increasing income and business tax rates
d. decreasing government transfer payments and purchases
a. increasing aggregate demand through expansionary policy
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The current deficit minus net interest is called the
A) primary deficit. B) net current deficit. C) current surplus. D) primary current deficit.
The cost efficiency of labor is equal to the
A. MRP of labor divided by the unit price of labor. B. MPP of labor divided by the wage rate. C. MPP of labor times the wage rate. D. Marginal cost of output.
If a competitive firm's marginal profit is positive at an output of 1000 units,
A) at 1000 units, MR = MC. B) it should produce more than 1000 units. C) it should produce less than 1000 units. D) at 1000 units, MR < MC.
A wealthy executive is holding money, waiting for a good time to invest in the stock market. This action would be an example of the:
A. Transactions demand for money B. Asset demand for money C. Creation of fiat money D. Use of money as a medium of exchange