To close an inflationary gap, the government will
a. run budget deficits
b. decrease taxes, leaving government spending unchanged
c. increase both taxes and government spending
d. run budget surpluses
e. legislate a reduction in the rate of inflation
D
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The quantity of labor supplied increases as the real wage rises because
A) higher real wages mean that nominal wages have increased. B) the opportunity cost of working increases. C) the quantity of labor demanded increases. D) labor force participation decreases so that only serious workers are left in the labor force. E) the opportunity cost of leisure rises.
When it comes to figuring out who wants to be an organ donor, the answer depends on:
A. how you ask the question. B. the default rule. C. whether presumed consent exists in the organ donation program. D. All of these statements are true.
Forms of commitments include
A) warranties. B) guarantees. C) advertising expenditures. D) all of these choices are forms of commitments.
A pizza shop owner who needs to buy a new pizza oven is trying to decide between two different used ones. Whichever oven he buys, it will generate $6,000 net revenue per year. But the older pizza oven has a useful life of only 3 years and the newer oven has a useful life of 5 years. If the interest rate is 7% per year, what is the difference in value between the two ovens? (Assume that each
year's revenue is received at the end of the year.) a. 413.25 b. $10,892.99 c. $15,745.90 d. $24,601.18 e. $8,855.29