Which of the following would those in favor of increasing government spending rather than decreasing taxes to prop up aggregate demand probably not agree with?
a. Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes for increasing aggregate demand.
b. Increased government spending on "shovel-ready" projects can be helpful to boost aggregate demand.
c. Increases in government spending offer a greater "bang for the buck" than decreases in taxes.
d. When the government gives a dollar in tax cuts to a household, that dollar immediately and fully adds to aggregate demand.
d
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, producer surplus is
A) $0. B) $16. C) $52. D) $68.
In the last few decades, the United States has generally experienced trade deficits.
a. true b. false
Free trade may lead to less pollution because
A. higher income can lead to political pressure on governments to enact tougher environmental protection policies. B. competition among nations leads to stricter pollution standards. C. it results in increased production and consumption of goods and services. D. imported products are produced using cleaner production techniques than domestic products.
A key assumption of most economic analysis is that people are altruistic, meaning that they act in their own self-interest.
Answer the following statement true (T) or false (F)