During recessions, government expenditure automatically

A) falls because of programs such as unemployment insurance and Medicaid.
B) rises because of programs such as unemployment insurance and Medicaid.
C) falls because of the progressive income tax system.
D) rises because of the progressive income tax system.


Answer: B

Economics

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We measure GDP in different ways because

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Economics

In the first calendar quarter a company issues a surprising report saying that it expects profits to rise in the fourth quarter. The theory of efficient markets says we should expect the price of the company's stock to:

A. rise around the third quarter since this information will take time to disseminate. B. rise immediately on the expectation of higher profits in the future. C. fall immediately as stockholders will be disappointed about having to wait until the fourth quarter for higher profits. D. rise in the fourth quarter when the higher profits are actually seen.

Economics

To maximize profit a perfectly competitive firm supplies a good up to the point at which

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Economics