Refer to the information provided in Table 24.6 below to answer the question(s) that follow.Table 24.6All Figures in Billions of Dollars
Refer to Table 24.6. If taxes are reduced from $100 billion to $50 billion and government spending is reduced from $200 billion to $150 billion, the new equilibrium level of income
A. is $3,550 billion.
B. is $3,350 billion.
C. is $1,600 billion.
D. cannot be determined from this information.
Answer: B
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A nominal anchor promotes price stability by
A) outlawing inflation. B) stabilizing interest rates. C) keeping inflation expectations low. D) keeping economic growth low.
If average cost is falling, then marginal cost must be falling.
Answer the following statement true (T) or false (F)
A person committing to carpool with a friend to the gym for daily workouts is an example of:
A. status quo bias. B. the endowment effect. C. a commitment device. D. positive framing.
In both the 1970s and the 1990s, extreme economic events caused unemployment to move in the same direction as inflation.
Answer the following statement true (T) or false (F)