To combat a recession with discretionary fiscal policy, Congress and the president should
A) decrease taxes to increase consumer disposable income.
B) decrease government spending to balance the budget.
C) lower interest rates and increase investment by increasing the money supply.
D) raise taxes on interest and dividends, but not on personal income.
A
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Based on the figure below. An economy in short-run equilibrium at point A has a(n) ________ gap. The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point ________ or the central bank could intervene with monetary easing establishing the long-run equilibrium at point ________. 
A. recessionary; B; C B. expansionary; B; C C. expansionary; C; B D. recessionary; C; B
Which of the following type of funds cater to wealthy individuals, are not bound by government regulations, and are actively traded in foreign exchange markets?
A) pension funds B) mutual funds C) hedge funds D) exchange funds
Many fear that cheap foreign labor will destroy American jobs; in reality, wages in
a. the United States have risen spectacularly in the last 33 years as trade grew. b. countries that export to the United States are very low relative to the United States and show no sign of rising. c. countries that export to the United States have risen spectacularly in the last 33 years. d. United States export industries are very low relative to wages in the same industry in other countries. e. All of the above are correct.
A theory of regulatory behavior, which states that regulators must take into account the preferences of legislators, producers, and consumers, is the
A) capture theory. B) share-the-gains, share-the-pains theory. C) public interest theory. D) general interests theory.