The set of fiscal policies that would be most contractionary would be a(n)
A. decrease in government purchases and an increase in taxes.
B. increase in government purchases and a decrease in taxes.
C. increase in government purchases and taxes.
D. decrease in government purchases and taxes.
Answer: A
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Rent ceilings
A) increase search activity. B) result in surpluses. C) create efficiency. D) benefit producers. E) have no effect if they are set below the equilibrium rent.
In the above table, what is the average variable cost to produce 4 units of output?
A sharp increase in the divorce rate increases the number of lawyers hired to determine divorce settlements. This will
A) decrease GDP and increase well-being in the economy. B) decrease GDP and decrease well-being in the economy. C) increase GDP and decrease well-being in the economy. D) increase GDP and increase well-being in the economy.
According to William Shepherd's examination of competitive trends in the U.S. economy, a market is effectively competitive if
a. the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other b. the top four firms supply more than 60 percent of the market, have stable market shares, and compete with each other c. the industry exhibits low concentration, few barriers to entry, and little or no collusion d. the industry exhibits low concentration and little or no collusion, despite significant barriers to entry e. the dominant firm has two close rivals