In the figure above, governments
A) collect taxes.
B) coordinate economic activities of households and firms.
C) hire factors of production.
D) own factors of production.
E) sell goods and services to household.
A
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Which of the following is a recommended strategy to increase productivity of the private sector?
a. A reduction in government subsidies to producers b. An increase in business taxes c. An increase in government investment in risky projects d. An increase in the money supply e. An increase in subsidy on goods and services
Studies by economists have found that a 10 percent increase in the minimum wage decreases teenage employment 10 percent
a. True b. False Indicate whether the statement is true or false
If the price of motel rooms increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel rooms has:
A. decreased by 5%. B. decreased by 10%. C. increased. D. remained constant.
Refer to Figure 28-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A
A) expansionary fiscal policy B) contractionary monetary policy C) contractionary fiscal policy D) expansionary monetary policy