During an expansion, automatic stabilizers cause the federal deficit to

A. increase.
B. either increase or decrease.
C. remain unchanged.
D. decrease.


Answer: D

Economics

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Pepsi and pizza are normal goods. When the price of pizza falls, the substitution effect by itself will cause a

a. shift to a lower indifference curve so that the consumer buys less Pepsi. b. shift to a higher indifference curve so that the consumer buys more Pepsi. c. movement along the indifference curve so that the consumer buys more Pepsi. d. movement along the indifference curve so that the consumer buys less Pepsi.

Economics

An increase in the U.S. trade deficit could be caused by

A. The imposition of a tariff on imported goods. B. An appreciation of the dollar. C. An increase in the rate of inflation in other countries. D. A depreciation of the dollar.

Economics

Refer to Table 17.2. If the price of output is $2 per unit and the wage rate is $40, how many workers should be hired?

A. six workers B. five workers C. four workers D. three workers

Economics

A monopolist can raise its price further above marginal cost, the more ______ is the ______ for its product.

Fill in the blank(s) with the appropriate word(s).

Economics