Refer to the above graph. What combination would most likely cause a shift from AD 1 to AD 2?
a. An increase in taxes and no change in government spending
b. A decrease in taxes and a decrease in government spending
c. A decrease in taxes and an increase in government spending
d. An increase in taxes and an increase in government spending
Answer: b. A decrease in taxes and a decrease in government spending
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When saving is negative, the value of the marginal propensity to save is negative
Indicate whether the statement is true or false
Who of the following would be counted as unemployed in Canada?
A) Sharon is a college student with no job. B) Doris only works five hours a week but is looking for a full-time job. C) Maurice has been laid off from his job for 20 weeks but expects to be called back soon. D) Bogdan has been laid off from his job but does not expect to be called back, and is not looking. E) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two -month search.
Suppose that Far North Canadian Lumber, Ltd., sells lumber in Canada at a price of $1,000 per 1,000 board feet and exports the same lumber to the United States at a price of $600 per 1,000 board feet. U.S. Lumber, Inc., produces and sells lumber for $700 per 1,000 board feet in the United States. What might Far North Canadian Lumber, Ltd., do to avoid the antidumping duty?
a. appeal to the U.S. International Trade Commission b. raise its price in the Canadian market c. raise its price in the U.S. market d. lower its price in the U.S. market
The 2008-2009 deficit stimulus spending by the federal government is an example of expansionary sound finance.
Answer the following statement true (T) or false (F)