Refer to the above figure. Suppose the relevant aggregate demand curve is AD2. If the government wants to use discretionary fiscal policy to close the existing gap, it should
A. decrease government spending.
B. increase taxes.
C. decrease taxes.
D. increase the money supply.
Answer: C
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Use the following diagrams for the U.S. economy to answer the next question.
Which of the diagrams best portrays the effects of an increase in foreign spending on U.S. products and an expansion?
A. Graph (1) B. Graph (2) C. Graph (3) D. Graph (4)
The majority of blacks were shipped from West Africa, but some also came from Madagascar and Zanzibar
Indicate whether the statement is true or false
The price system ultimately determines the allocation of resources among producers.
Answer the following statement true (T) or false (F)
When a firm decides to hire more workers because local wage rates have decreased, this is an example of
a. substitution in consumption. b. market failure. c. labor exploitation. d. substitution in production.