If the government wishes to maintain a balanced budget during a recession, it must
A. increase taxes, decrease transfer payments, and/or decrease government spending.
B. decrease taxes, decrease government spending, and/or decrease transfer payments.
C. decrease taxes, increase transfer payments, and/or decrease government spending.
D. increase taxes, increase government spending, and/or increase transfer payments.
A. increase taxes, decrease transfer payments, and/or decrease government spending.
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In the long-run AS-AD model,
a. the position of the AD curve determines output b. the self-correcting mechanism of the economy is irrelevant c. the AS curve shifts leftward whenever the economy is growing d. the position of the AD curve determines the price level e. output fluctuates a great deal
Wilma values a decorative garden rock at $15, while Fred values it at $10 . The price of a decorative garden rock is $9 . If the government imposes a $2 tax per decorative garden rock and the price of the rock rises to $11, what part of the deadweight loss comes from Wilma, and what part comes from Fred?
a. none comes from Wilma; $1 comes from Fred b. none comes from Wilma; $3 comes from Fred c. $2 comes from Wilma; $1 comes from Fred d. $4 comes from Wilma; $3 comes from Fred
In 2011, which category represented the largest source of receipts for the U.S. federal government?
a. Medicare b. Social Security c. corporate income taxes d. individual income taxes
Oligopolists compete on quality but not price.
Answer the following statement true (T) or false (F)