An appropriate Keynesian response to a recessionary gap is to:
a. decrease net taxes
b. decrease government spending.
c. increase interest rates.
d. increase the cash reserve ratio.
a
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If taxes are cut, there is
A) an increase in aggregate demand and the AD curve shifts rightward. B) a decrease in aggregate demand and the AD curve shifts leftward. C) an increase in the quantity of real GDP demanded and a movement up along the AD curve. D) a decrease in the quantity of real GDP demanded and a movement down along the AD curve. E) no change in aggregate demand, only a change in potential GDP.
When a firm decides to produce more electric cars and conventional gas powered cars, it is most directly answering the ________ part of one of the two big economic questions
A) "how" B) "scarcity" C) "what" D) "for whom"
Why does a single-price monopoly produce a smaller output and charge more than the price that would prevail if the market were perfectly competitive?
What will be an ideal response?
When the US government engages in deficit spending, that spending is primarily financed by
(a) increasing the required reserve ratio (b) borrowing from the World Bank (c) issuing new bonds (d) appreciating the value of the dollar (e) depreciating the value of the dollar