In Figure 9.8, if full-employment income is produced at $400 billion, the government can reduce a recessionary gap by
A. Decreasing government spending.
B. Increasing taxes.
C. Decreasing investment spending.
D. Decreasing income taxes on consumers.
Answer: D
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Which of the following statements is true of a monopolist's supply curve?
A) The supply curve is vertical. B) The supply curve is upward sloping. C) The supply curve is downward sloping. D) A monopolist does not have a supply curve.
The optimal bidding strategy for a second-price auction is
a. To bid your true value b. To shade your bid well below your true value c. To shade your bid just a little below your true value d. To size up your competition to determine how much to shade your bid
If the marginal propensity to consume was 0.75, it would mean that:
A. $0.75 of an additional $1 of individuals' after-tax income is spent on consumption. B. $0.75 of an additional $1 of individuals' after-tax income is saved. C. $0.25 of an additional $1 of individuals' after-tax income is spent on consumption. D. None of these is true.
A positively sloped long-run average total cost curve means there are economies of scale
Indicate whether the statement is true or false