The presence of the automatic stabilizers means an increase in the budget deficit will be automatically experienced during a recession whereas a budget surplus will be automatically experienced during an economic expansion
a. True
b. False
Indicate whether the statement is true or false
True
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A good is considered to be nonexcludable if
A) your consumption of the good reduces the quantity available for others to consume. B) the producer can keep those who did not pay for the good from consuming the good. C) the producer finds it difficult to keep those who did not pay for the good from consuming the good. D) it is jointly owned by all members of a community.
Economists generally agree that in the long run changes in aggregate demand affect
A) aggregate output but not the price level. B) the price level but not aggregate output. C) both the price level and aggregate output. D) neither the price level nor aggregate output.
In the long run, firms in a monopolistically competitive market operate at:
A. an efficient scale. B. a less-than-efficient scale. C. a more-than-efficient scale. D. Any of these could be true, depending on the individual firm.
You purchase a bag of chocolate chips for $3, a bag of flour for $1, a bag of sugar for $.50, a half dozen eggs for $.50, and a half pound of butter for $2. You use all these ingredients to make three dozen cookies. Your roommate offers you $15 for them, and you happily accept. How much does this process contribute to GDP?
A. $7 B. $15 C. $22 D. $8