An increase in the corporate profits tax would shift the demand for loanable funds curve to the left
a. True
b. False
A
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Classical economists thought that
A. flexible wages and prices were the principal causes of recessions. B. the Great Depression confirmed their view of the business cycle. C. government policies and spending were needed to keep the economy at full employment. D. ?price, wage, and interest rate flexibility can quickly cure any tendencies for a recession.
Consider a two-good production economy in which both goods are produced with fixed proportions production functions. Then, some efficient allocations will exhibit unemployment of some factor providing:
a. the firms use the inputs in different proportions. b. the firms exhibit diminishing returns to scale. c. the firms exhibit increasing returns to scale. d. production can never be efficient if there are unemployed inputs.
The cost disease of the service sector is evidenced by
A. a failure of the market mechanism. B. increased quality of public and private services. C. dramatic increases in municipal budget burdens for education, health care, and police and fire protection. D. the increased productivity in the services area.
Refer to the information provided in Table 24.2 below to answer the question(s) that follow. Table 24.2
Refer to Table 24.2 At the equilibrium level of income, leakages equal ________ billion.
A. $0 B. $300 C. $500 D. $200