Starting from potential output, if firms become more optimistic about the future and decide to increase their investment in new capital, then this will generate a(n) ________ gap and inflation will ________.
A. expansionary; increase
B. expansionary; decrease
C. recessionary; decrease
D. recessionary; increase
Answer: A
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A) game theory. B) opportunistic behavior. C) the dominant equilibrium. D) the tit-for-tat equilibrium.
Since 1970, the federal government budget has never been in surplus
a. True b. False Indicate whether the statement is true or false
Which statement is true?
A. There are at least a dozen different theories of poverty. B. The liberals and conservatives are in basic agreement about the causes of poverty. C. The liberals and conservatives are in basic agreement about how to solve the poverty problem. D. None of these statements are true.
The OECD has set transfer pricing guidelines to enhance the manipulation of prices and therefore taxes for MNEs and the countries where they operate.
a. true b. false