If Congress votes to increase government purchases and at the same time decreases personal income taxes, they
A. have decided to balance the federal budget.
B. have voted for the proper policy to counteract a recessionary gap.
C. have voted for the proper policy to counteract an inflationary gap.
D. are trying to achieve a federal budget surplus.
Answer: B
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In monopolistically competitive industries
A) non-price competition through product differentiation is actively pursued by firms. B) product variety is the same as in perfectly competitive industries. C) firms do not respond to changes in consumer demand. D) firms' economic profits are protected by barriers to entry.
A Gini coefficient based on population deciles tends to be lower than a Gini coefficient based on income
Indicate whether the statement is true or false
Which of the following shifts short-run aggregate supply right?
a. an increase in the price level b. an increase in the minimum wage c. a decrease in the price of oil d. more people migrate abroad than immigrate from abroad
Does the term "mandatory spending" mean that spending must go on forever?
A) Yes, Congress has no right to change these spending programs. B) Yes, the laws which authorized this spending cannot be changed. C) No, once appropriated, spending is for the life of the program only or until it changes. D) Yes, once appropriated, spending is indefinite.