To decrease output the government could
A. increase government spending and encourage immigration.
B. decrease government spending and discourage immigration.
C. increase government spending and discourage technological advancement.
D. decrease government spending and encourage technological advancement.
Answer: B
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One of the main reasons for increasing income inequality in the United States is __________.
a. contraction in international trade
b. rapid technological change
c. an increase in white collar crimes
Suppose the demand for milk is relatively inelastic. What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?
A) Sales revenue remains unchanged. B) Sales revenue rises. C) Sales revenue falls. D) It cannot be determined without information on prices.
An individual bank can lend out at most its
a. actual reserves b. fractional reserves c. legal reserves d. demand deposits e. excess reserves
A favorable supply shock
a. raises unemployment and the inflation rate. b. raises unemployment and reduces the inflation rate. c. reduces unemployment and raises the inflation rate. d. reduces unemployment and the inflation rate.