Tax policy can affect ____________________ and investment spending, resulting in a shift in the AD curve.

a. consumption
b. savings
c. production
d. government


a. consumption

Economics

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The output losses from an adverse inflation shock are ________ and the output losses from a fall in potential output are ________.

A. large; small B. small; large C. permanent; temporary D. temporary; permanent

Economics

If the net benefit of Project A is $10 and that of Project B is $12, which of the following statements is true?

A) An individual can optimize by choosing Project B. B) Switching from Project A to Project B reduces the net benefit by $2. C) An individual can optimize by choosing Project A. D) Switching from Project A to Project B increases the net benefit by $1.2.

Economics

Based on empirical evidence, the "farm problem" that has confronted U.S. policymakers for many years is attributable, in large part, to the relatively inelastic demand for many agricultural products

Indicate whether the statement is true or false

Economics

In the long run,

A. all of the firm’s input quantities are variable. B. the firm can vary the quantities of some but not all inputs. C. managers become less efficient. D. the total cost of producing any given level of output is greater than or equal to the short-run total cost of producing that level of output.

Economics