Answer the following statements true (T) or false (F)
1. A decrease in government spending and a cut in taxes would be a pair of fiscal policies that reinforce each other.
2. The flexibility of the price level tends to dampen the multiplier effect of fiscal policy.
3. Built-in stability is exemplified by the fact that with a progressive tax system, net tax revenues decrease when GDP decreases.
4. If taxation becomes more progressive, the built-in stability in the economy will decrease.
5. Transfer payments that increase as GDP falls are a type of automatic stabilizer in the economy.
1. False
2. True
3.True
4. False
5. True
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A monopoly's output decision depends only on the shape of its marginal cost curve
Indicate whether the statement is true or false
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