Which of the following is most likely to increase a federal budget surplus?
A. A lower inflation rate and a lower unemployment rate.
B. A higher inflation rate and a higher unemployment rate.
C. A lower inflation rate and a higher unemployment rate.
D. A higher inflation rate and a lower unemployment rate.
Answer: D
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How can tax simplification be beneficial to the economy?
What will be an ideal response?
To increase the money supply, the Fed could
a. sell government bonds. b. decrease the discount rate. c. increase the reserve requirement. d. None of the above is correct.
Why does the short-run equilibrium situation usually not last long?
a. Firm downsizing happens in the long run. b. Government regulations are applied in the long run. c. Higher taxes are enforced in the long run. d. Entry and exit happen in the long run.
A market demand schedule for a product indicates that
A) as the product's price falls, consumers buy less of the good. B) there is a positive relationship between price and quantity demanded. C) as a product's price rises, consumers buy more of the good. D) there is a negative relationship between price and quantity demanded.