The index of leading economic indicators:
a. provide accurate information on the duration of downturns in the economy
b. virtually always predicts downturns in the economy with a lead time of six months.
c. can result in a self-fulfilling prophecy if business firms respond to leading economic indicator predictions.
d. provide accurate information on the depth of downturns in the economy.
c
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In 1963, government economists assumed that the MPC for the United States was approximately 0.90. If taxes were cut by $9 billion, then consumer expenditures would initially be expected to
A. decrease by $9.0 billion. B. increase by $9.0 billion. C. decrease by $8.1 billion. D. increase by $8.1 billion.
Answer the next question on the basis of the following four tax schedules for the given base of taxable income. IncomeTax ATax BTax CTax D$10,000$650$1,000$500$1,00020,0008502,0001,0003,00030,0009504,0001,5006,00040,0001,0506,0002,0009,500Which of the above tax schedules is a progressive tax schedule throughout?
A. Tax A B. Tax B C. Tax C D. Tax D
Economists and psychologists are often on opposite sides of the economic growth debate. The nature of the debate is such that
A. economists emphasize the benefits of growth to finance valuable programs, and psychologists question whether more goods make people happier. B. economists emphasize that more money means more income for the government, and psychologists believe poorer people are happier. C. economists believe that economic growth imposes no serious costs on the economy, and psychologists question the statistical reliability of GDP numbers. D. economists stress the importance of money relative to leisure, and psychologists stress the importance of an unstructured life.
Peter studies at the coffee shop around the corner, at the same time that John talks loudly on his cell phone. The costs and benefits of each cell phone call made by John are given by the following table: 
If the both Peter and John could negotiate a settlement without transactions costs, how many phone calls would John end up making if Peter had the rights to stop any cell phone calls from taking place at the coffee shop?
A. 3 B. 1 C. 0 D. 2