In a binding situation, there is ________ crowding out of planned investment when net taxes decrease.
A. partial
B. complete
C. no
D. negative
Answer: C
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If in order to sell its bonds the government raises interest rates on the bonds it offers, financing government spending by public debt, it
a. may end up crowding out private investment and slowing economic growth in the private sector b. may end up crowding out public investment and increasing economic growth in the private sector c. may slow down inflation and maintain economic growth d. makes it cheaper for private industry to finance its own investment e. will convert deficits to surpluses but at the expense of stable prices
Suppose a boom in stock market prices helps make people feel wealthier. Using the model of aggregate demand and aggregate supply, identify the curves that are affected, and which way these curves would shift
A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. What is the producer surplus for each firm?
What will be an ideal response?
Judging from the table, which of the following is the best estimate for the percentage of discouraged workers in the civilian labor force?
a. 0.2 percent
b. 0.9 percent
c. 1.3 percent
d. 3.5 percent