The economy goes into recession. Which of the following lists contains things policymakers could do to try to end the recession?
a. increase the money supply, increase taxes, increase government spending
b. increase the money supply, increase taxes, decrease government spending
c. increase the money supply, decrease taxes, increase government spending
d. decrease the money supply, increase taxes, decrease government spending
c
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The people firms hire to attempt to convince state legislators and members of Congress to pass laws that are favorable to the economic interests of the firms are called
A) government bureaucrats. B) lobbyists. C) legislative assistants. D) economic advisors.
What is the main argument which explains why an increased public deficit financed tax cut may not result in increased consumption?
A) People will increase savings to "finance" debt repayment by future generations. B) People will increase consumption to "finance" debt repayment by future generations. C) Savings is determined by uncertain events, the timing of future illnesses and death. D) Savings is determined by certain events, the timing of future illnesses and death.
If a production process generates pollution, then a competitive market will
A) produce more of the good than is socially optimal. B) produce less of the good than is socially optimal. C) produce the socially optimal quantity of that good. D) produce zero output.
Suppose a monopolist and a competitive price-taker firm have the same cost curves. The monopoly firm would
a. charge a lower price than the competitive price-taker firm. b. charge a higher price than the competitive price-taker firm. c. charge the same price as the competitive price-taker firm. d. refuse to operate in the short run unless an economic profit could be made. e. refuse to operate in the short run if an economic loss was present.