The total of producer and consumer surplus is maximized when there is overproduction.
Answer the following statement true (T) or false (F)
False
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In the expansion phase of a business cycle:
a. The inflation rate decreases, but productive capacity increases b. Employment increases, but output decreases c. Employment and output increase d. The inflation rate and productive capacity decrease
GDP is the:
A. national income minus all nonincome charges against output. B. monetary value of all final goods and services produced within the borders of a nation in a particular year. C. monetary value of all economic resources used in producing a year's output. D. monetary value of all goods and services, final and intermediate, produced in a specific
Refer to Figure 4-9. For each unit sold, the price sellers receive after the tax (net of tax) is
A) $12. B) $8. C) $4.40. D) $3.
The most appropriate countercyclical policy, or stabilization policy, in times of unemployment, according to classical economists, is for the government to
a. increase the minimum wage b. impose wage and price controls c. stimulate aggregate demand d. cut taxes e. do nothing