One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
You might also like to view...
Suppose in a democratic society, all voters prefer choice G over choice B; however, when the two choices are presented along with a third choice, R, B wins the election. This violates the assumption of
A) transitivity. B) non-dictatorship. C) independence of irrelevant alternatives. D) completeness.
Decisions about what to buy and what to sell in the United States are determined primarily by which of the following?
a. Laws of supply and demand b. Projected business profit c. Market price d. Demand curve.
Monopolistic competition entails a deadweight loss to society, even if the firms earn zero economic profits.
Indicate whether the statement is true or false.
A competitive employer will hire inputs up to the point where the:
A. Marginal product of the input reaches a maximum B. Price of the input equals the price of the output C. Price of the input equals the marginal product of the input D. Price of the input equals the marginal revenue product of the input