To eliminate a recessionary gap, what fiscal policy should the government pursue?
What will be an ideal response?
A recessionary gap occurs when real GDP is less than potential GDP. To restore full employment, the government should increase its expenditures on goods or services or decrease its taxes.
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The average total cost curve of a firm is U-shaped
a. True b. False Indicate whether the statement is true or false
Which of the following is not one of the revenues of a typical high school athletic program?
a. local and city school taxes b. state taxes c. donations d. booster clubs e. none of these
The Reagan tax cuts of the 1980s
A. had not impact on the budget deficit. B. decreased the budget deficit. C. increased the budget deficit. D. initially decreased the deficit but later increased it.
Which statement is true?
A. There are over 50 million Americans living below the poverty line. B. The poverty line is raised each year. C. Nearly all the nation's poor people live in the South. D. Poverty is a greater problem today than at any time since the end of World War II.