During an expansion, tax revenues ... and government transfer payments ...

What will be an ideal response?


increase; decrease

Economics

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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher

Economics

In any subgame perfect equilibrium to an infinitely repeated Prisoners' Dilemma game, the players will end up cooperating.

Answer the following statement true (T) or false (F)

Economics

Based on the table above, if the wage rate is $500 and the price of output is $5, how many workers should the firm hire?

What will be an ideal response?

Economics

Fiat money is money:

a. accepted by law regardless of its intrinsic value. b. that is not included as part of the M1 money supply. c. that is backed by gold or silver held on reserve by the government. d. such as coins that are made from metal.

Economics