To close a recessionary gap using fiscal policy, the government can:
A. increase government spending by the size of the gap.
B. decrease government spending by the size of the gap.
C. increase government spending by more than the size of the gap.
D. increase government spending by less than the size of the gap.
Answer: D
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The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table. Based on the table, the marginal cost of producing the fourth gallon of ice cream is
A) $2. B) $3. C) $5. D) $8. E) $32.
When a firm ignores external costs:
A. it fails to maximize its profits. B. it is willing to produce too little of the good at the given price. C. the good is priced too cheaply in equilibrium. D. it also ignores external benefits.
The single source of monopolies is economies of scale.
Answer the following statement true (T) or false (F)
One study found that unemployment is the economic term mentioned most often in U.S. newspapers
a. True b. False Indicate whether the statement is true or false