Refer to the figure above. Total welfare can be increased by ________
A) increasing output above Q1
B) reducing output below Q1
C) lowering the market price below P1
D) increasing the market price above P2
B
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Assume that with existing tax and spending laws, government spending exceeds government tax revenues. To cover the resulting shortfall, the government must:
A) increase consumers' incomes. B) print more money. C) Borrow money in the financial markets. D) lower interest rates.
Countries with surpluses in their balance of payments frequently do not want to see their currencies ________ because it makes their goods ________ expensive abroad
A) appreciate; less B) appreciate; more C) depreciate; less D) depreciate; more
Fiscal policy tries to influence target variables by manipulating
A) money supply. B) interest rates. C) government expenditures. D) All of the above.
The natural rate of unemployment includes frictional, cyclical, and structural unemployment
a. True b. False Indicate whether the statement is true or false