The "underground economy" refers to
A) the buying and selling of goods that is concealed from the government.
B) the production of goods and services used by the government for covert spy operations.
C) the sector of the economy that earns profits that are higher than average.
D) the formal sector of the economy in developing countries.
Answer: A
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The growth-reducing effects of high public debt are transmitted entirely through high real interest rates on that debt
a. True b. False Indicate whether the statement is true or false
Which of the following will not cause the aggregate supply curve to fall?
a. A reduction in a nation's level of productivity. b. An increase in input prices. c. An increase in the value of the domestic currency. d. Natural disasters.
If the Fed wishes to decrease the money supply it can:
A. Raise the discount rate. B. Buy bonds on the open market. C. Decrease the required reserve ratio. D. Decrease the federal funds rate.
The figure above shows the demand and cost curves facing a price-setting firm. What is marginal revenue when output is 100 units?
A. $10 B. $35 C. $25 D. $20 E. $30