When changes in taxes and government purchases occur in the economy without explicit action by Congress, such changes are referred to as
A. discretionary fiscal policy.
B. automatic stabilizers.
C. cyclical stabilization.
D. implicit stabilization.
Answer: B
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If the fringe supply curve shifts leftward in the dominant firm model, then the resulting market equilibrium price is ________ and the dominant firm's quantity ________
A) lower, decreases B) lower, increases C) higher, decreases D) higher, increases
World War II led to a dramatic increase in economic growth in the United States because
a. the war caused the U.S. to move along its production possibilities frontier away from consumer goods and towards military goods b. the economy was already at close to full employment c. there were unemployed resources in the U.S. economy prior to the war d. the economy shifted production towards more profitable consumer goods during the war e. the opportunity cost of producing military goods increased considerably during the war years
Landon increases his consumption of Good X and Good Y when his income increases. For Landon
A. Good X and Good Y are substitute goods. B. Good X and Good Y are complement goods. C. Good X and Y are normal goods D. Good X is an inferior good.
If the cost of capital decreased to 1%, does the firm invest in the new technology?
a. Yes because the NPV>0 b. Yes because the NPV=0 c. Need information on the marginal benefits and costs d. No because the NPV<0