To close a recessionary gap using fiscal policy, the government can:
a. increase government spending by the size of the gap.
b. decrease government spending by the size of the gap.
c. increase government spending by more than the size of the gap.
d. increase government spending by less than the size of the gap.
e. decrease government spending by more than the size of the gap.
a
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Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. If the Busy Bee produces 40 hamburgers per hour, then
A) marginal revenue will exceed marginal cost. B) profit will be maximized. C) marginal revenue will be negative. D) marginal revenue will be maximized. E) both the marginal revenue and the price will be negative.
Of the various models of noncooperative oligopoly behavior discussed in the text, which one has the greatest shortcoming when it comes to explaining observed behavior in an oligopoly market
What will be an ideal response?
The union with the largest membership is
A. The International Brotherhood of Teamsters. B. The American Federation of State, County, and Municipal Employees. C. The National Education Association. D. The United Steelworkers of America.
If the U.S. has exports of $1.5 trillion and imports of $2.2 trillion, then the U.S
a. sells more overseas then it buys from overseas; it has a trade deficit. b. sells more overseas then it buys from overseas; it has a trade surplus. c. buys more from overseas then it sells overseas; it has a trade deficit. d. buys more from overseas then it sells overseas; it has a trade surplus.