The primary cause of inflation is
a. large budget deficits.
b. high taxes.
c. rapid expansion of the money supply.
d. government expenditures that are large relative to the size of the economy.
C
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Refer to Figure 9.4. If the government establishes a price floor of $40 and government purchases the surplus over quantity demanded, producer surplus will
A) fall by $275. B) fall by $500. C) remain the same. D) rise by $275. E) rise by $500.
A profit-maximizing monopolist will never produce on the elastic segment of its demand curve
Indicate whether the statement is true or false
Given the slope of a supply curve, consumers take a relatively smaller share of a tax if their demand becomes more price elastic.
Answer the following statement true (T) or false (F)
A government budget deficit is
A. all federal government debt irrespective of who owns it. B. an excess of government spending over government revenues during a given time period. C. the total value of all outstanding federal government securities. D. a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period.