Investment spending ____ during a recession, and _____ during an expansion
Fill in the blank(s) with the appropriate word(s).
declines; increases
You might also like to view...
Land is an example of a renewable resource
Indicate whether the statement is true or false
A tax system that applies a lower marginal tax rate at higher levels of income is
A) progressive. B) regressive. C) proportional. D) backward.
In 2010 the federal government reduced the Social Security tax withholding rate from 12.4 percent (6.2 percent on both the employer and employee) to 8.4 percent (4.2 percent on both the employer and employee) on the wages of all workers. If the supply of labor is relatively inelastic when compared to the elasticity of the demand for labor, the burden of this tax will
a. continue to fall primarily on employees. b. continue to fall primarily on employers. c. be divided equally between employees and employers. d. change from primarily falling on employees to employers.
When the price of a good rises, the price is transmitting information indicating that the good has become relatively
A) scarcer. B) less scarce. C) more plentiful in supply. D) b and c