Expansionary fiscal policy is ineffective if
A) there are idle resources in the economy.
B) the MPC is less than 0.60.
C) the government has a budget surplus.
D) there is complete crowding out.
E) a and d
D
You might also like to view...
If the minimum wage is above the equilibrium wage rate, then an increase in the minimum wage ________ employment and ________ unemployment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; increases
Refer to Table 13-4. Based on the data in the table, which of the following statements is true?
A) The table summarizes Victoria's short-run, rather than long-run, market for plastic vials. B) Victoria should advertise more in order to increase the demand for plastic vials. C) Victoria could be either a monopolistically competitive or a perfectly competitive firm. D) Victoria should shut down temporarily.
Free trade is a zero-sum activity because a country always gains at the expense of its trading partner.
Answer the following statement true (T) or false (F)
If Tiger Toys faces a demand curve of P = 85 ? 0.25Q and a MC = ATC = 20, then the economic profits would be
A. $2,600. B. $6,825. C. $4,225. D. $130.