Other things equal, a decrease in government spending shifts
A. the AS curve to the right.
B. the AD curve to the left.
C. the AD curve to the right.
D. the AS curve to the left.
Answer: B
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If output changes in fixed proportion to a change in all of a firm’s productive resources, the firm has
a. constant marginal returns. b. constant returns to scale. c. decreasing marginal returns. d. decreasing returns to scale.
Answer the following statements true (T) or false (F)
1. A good tax must possess the characteristic of equality. 2. If the cost of collecting a tax is low relative to the revenue generated, the tax is said to be economical. 3. Interest on the national debt is an insignificant part of the U.S. federal budget. 4. In the United States, income is taxed only by the federal government. 5. The equality-of-sacrifice doctrine would require larger taxes from higher-income groups.
The real interest rate is:
A. adjusted for inflation. B. the interest rate paid to savers. C. the interest rate charged to borrowers. D. the reported interest rate, not adjusted for inflation.
Refer to the table and information below. What is the total amount that the government should spend on construction projects?
A government is considering undertaking one or more construction projects. The estimated marginal costs and benefits of each project are given in the table.
A. $8 million
B. $14 million
C. $19 million
D. $37 million