According to Keynes, the private sector (by itself)
A) can always move the economy out of a recessionary gap in a timely manner.
B) cannot always move the economy out of a recessionary gap in a timely manner.
C) can never move the economy out of a recessionary gap.
D) can only move the economy out of a recessionary gap if the SRAS curve drops.
E) can only move the economy out of a recessionary gap if the SRAS curve rises.
B
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The owner of a sole proprietorship has limited liability, while stockholders of corporations have unlimited liability
a. True b. False Indicate whether the statement is true or false
The key difference between monopolistic competition and perfect competition is that in monopolistic competition the tangency of
a. AC and the demand curve occurs along the negatively sloped part of AC. b. the demand curve and AC occurs at the minimum point of the AC curve. c. AC and the demand curve occurs along the positively sloped part of AC. d. MC and MR at the optimum output.
A higher marginal income tax rate reduces incentives to work because:
A. leisure and other non-market activities aren't taxed, and so their relative price goes up. B. the opportunity cost of leisure remains constant while after-tax wages fall. C. the opportunity cost of leisure increases with the marginal income tax rate. D. leisure and other non-market activities aren't taxed, and so their relative price goes down.
The monetary base includes
A. currency, checkable accounts, traveler's checks, small CDs, and money market accounts. B. currency plus checkable accounts and traveler's checks. C. just cash held by the public. D. cash held by banks and by the public plus deposits at the Federal Reserve.