Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing
A. Taxes by more than $600 billion.
B. Government spending by exactly $600 billion.
C. Government spending by less than $600 billion.
D. Taxes by exactly $600 billion.
Answer: C
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A point outside of the production possibility frontier is:
A. inefficient. B. impossible. C. efficient. D. on the contract curve.
If a firm in a perfectly competitive market faces a market price of $5, and it decides to produce 400 units, the firm's total revenue will be:
A. $5. B. $400. C. $2,000. D. $405.
Economic growth due to labor force expansion or capital investments will result inI.A leftward shift of short-run aggregate supply.II.A rightward shift in long-run aggregate supply.
A. I only B. II only C. Both I and II D. Neither I nor II
Medicaid is the Federal Government program that provides health insurance to the
A. elderly. B. injured. C. handicapped. D. poor.