The thrust of government fiscal policy is expansionary when:
(a) Expenditure and taxation are increased.
(b) Government expenditure is reduced and taxation is increased.
(c) Expenditure and taxation are decreased.
(d) Government expenditure is increased and taxation is reduced.
Answer: (d) Government expenditure is increased and taxation is reduced.
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Based on the graph showing equilibrium output and price for a monopolist, if a monopolist realizes it is producing at QM, it should ______.
a. reduce output to Q1
b. increase output to Q2
c. maintain output at QM
d. set output at QD
Refer to the information provided in Figure 32.3 below to answer the question(s) that follow.
Figure 32.3Refer to Figure 32.3. Suppose the economy is at Point A. According to the rational expectation theory, an unanticipated decrease in money supply
A. leaves the economy at Point A. B. moves the economy to Point B. C. moves the economy to Point C. D. moves the economy to Point D.
Which of the following statements is true about monopsony? a. Monopsonists face an upward-sloping supply curve of labor as long as unions control the supply curve of labor
b. Monopsonists can choose to hire any number of workers they wish. c. Monopsonists are also monopolists. d. Monopsonists will keep hiring until the worker's MRP = TLC. e. Monopsonists face a horizontal supply curve of labor as long as unions do not control the supply of labor.
Adam Smith created the theory of comparative advantage
Indicate whether the statement is true or false