According to Ricardian equivalence, taxation and government borrowing have the same effect on spending in the private sector
a. True
b. False
Indicate whether the statement is true or false
True
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Economic contractions during the period from 1950 to 2007
A. were longer than prior contractions. B. were deeper (in terms of Real GDP) than prior contractions. C. produced larger increases in unemployment than did prior contractions. D. were less frequent than prior contractions.
As one moves down along a linear demand curve (i.e., from high price, low quantity pairs to low price, high quantity pairs), demand:
A. decreases. B. becomes less elastic. C. increases. D. becomes more elastic.
Marginal cost is defined as:
A) the change in total cost due to a one unit change in output. B) total cost divided by output. C) the change in output due to a one unit change in an input. D) total product divided by the quantity of input.
Under "trickle down", additional economic activity will benefit the poor
Indicate whether the statement is true or false