Since actual budget deficits surpassed 10 percent of GDP in 2009:
A. fiscal policy has become contractionary.
B. the deficits as a percentage of GDP have fallen, but fiscal policy has remained
expansionary.
C. deficits as a percentage of GDP have continued to rise.
D. deficits as a percentage of GDP have remained constant but risen in dollar amounts.
B. the deficits as a percentage of GDP have fallen, but fiscal policy has remained
expansionary.
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Nick Lewis is a strict vegetarian and dislikes the sight and smell of meat products. He buys a raffle supporting the Josh Gottheil Memorial Fund for Lymphoma Research and wins the 3rd prize: a year's supply of hamburger meat. He is willing to trade with his meat-loving friends, and a trade ensues. This is because the
a. marginal utility of meat for them is positive and for Nick, it's negative b. total utility of meat for them and for Nick is positive c. MU/P of the goods his friends trade away is higher than their MU/P of meat d. MU/P of meat for Nick is higher than the MU/P of the goods he gets for the meat e. his friends have a negative total utility of meat, but wish to help Nick
Which of the following taxes is least likely to be shifted?
a. a federal excise tax on grapefruit b. a sales tax on some foodstuffs c. a personal income tax d. a state tax on football tickets
Under the Bretton Woods system, devaluation was:
a. normal b. routine c. rare d. a last resort
Suppose a perfectly competitive firm's marginal revenue is $10 and its marginal cost is $11. Under these circumstances the firm:
A. needs to know the market price before it can determine whether it is maximizing profit. B. is not maximizing profit and should increase output. C. is maximizing profit and should not change output. D. is not maximizing profit and should reduce output.