Refer to the information provided in Figure 24.4 below to answer the question(s) that follow.
Figure 24.4Refer to Figure 24.4. If aggregate expenditures are represented by AE2 and government spending increases by $100 billion, equilibrium aggregate output increases by $________ billion.
A. 100
B. 300
C. 500
D. 800
Answer: C
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Someone is considered to exhibit risk-seeking behavior if he:
A. has a high willingness to take on situations with risk. B. has a low willingness to take on situations with risk. C. will only participate in high-risk situations. D. will always choose the riskier venture when given two choices.
The U.S. income tax is based on the principle of
a. cost of service. b. benefit received. c. ability to pay. d. equality of sacrifice.
Which of the following is most likely to close a recessionary gap in the economy?
What will be an ideal response?
What are the two largest categories in federal government spending?
A. national defense and income security B. Social Security and income security C. national defense and Medicare D. Social Security and Medicare