The government of Auspicia increases taxes and cuts spending during a recession. Which of the following is likely to happen in in Auspicia, according to the Keynesians?
A. Reduction in unemployment
B. Increase in consumption
C. Decrease in economic activity
D. Increase in investment
Answer: C
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If a firm wants to buy a piece of capital equipment, is this firm a demander or supplier in the financial market?
What will be an ideal response?
Which of the following events would cause a rightward shift in the market supply curve for automobiles?
A. A technological improvement that reduces the cost of production. B. A higher sales tax on automobiles. C. An increase in the wages of autoworkers. D. A decrease in the number of sellers.
Natural gas found in Oklahoma is an example of
A. physical capital. B. human capital. C. labor. D. land.
If the United States wants to increase its net exports in the short term, it might take steps to:
A. increase its GDP. B. reduce existing tariffs and import quotas. C. appreciate the dollar compared to foreign currencies. D. depreciate the dollar compared to foreign currencies.