Countercyclical discretionary fiscal policy calls for:
A. surpluses during recessions and deficits during periods of demand-pull inflation.
B. deficits during recessions and surpluses during periods of demand-pull inflation.
C. surpluses during both recessions and periods of demand-pull inflation.
D. deficits during both recessions and periods of demand-pull inflation.
B. deficits during recessions and surpluses during periods of demand-pull inflation.
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A firm practicing group price discrimination across two countries sets MR = common MC and therefore
A) price will be the same in both countries. B) price will be twice MR. C) profit will be the same in both countries. D) price will likely be different in each country.
An implication of the median voter theorem is that Republicans and Democrats will try to align their views with those of the median voter
a. True b. False Indicate whether the statement is true or false
As the Consumer Price Index increases, the value of money
a. falls, so people hold more money to buy the goods and services they want. b. falls, so people hold less money to buy the goods and services they want. c. rises, so people hold more money to buy the goods and services they want. d. rises, so people hold less money to buy the goods and services they want.
Give an example of two products that are substitutes. Explain why they are substitutes.
What will be an ideal response?