A recession tends to cause the federal budget deficit to ________ because tax revenues ________ and government spending on transfer payments ________
A) increase; rise; falls
B) increase; fall; rises
C) decrease; rise; falls
D) decrease; fall; rises
Answer: B
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In the above figure, if this natural monopolist were unregulated, the profit maximizing firm would sell the product at the price
A) A. B) B. C) C. D) F.
This spring break you are planning to leave the United States and visit London, where you will stay in a hotel for 10 days. The London hotel will be performing a(n) ________.
A) indirect merchandise export B) merchandise export C) service export D) service import
If an economy is currently operating at its potential level of real GDP, an increase in aggregate demand will
A. increase the price level. B. decrease the price level. C. cause stagflation. D. produce long-run economic growth.
The drop-in-the-bucket problem is intrinsic to public goods.
Answer the following statement true (T) or false (F)