The major objective of the European Central Bank is to control taxes as a means of deficit spending

a. true
b. false


b. false

Economics

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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.

A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary

Economics

The employees of Ajax cookies are on strike. Jane has decided not to shop at any store that is still selling Ajax cookies. This is known as

A) a closed shop. B) a union shop. C) a sympathy strike. D) a secondary boycott.

Economics

Refer to the graph shown. If the monopoly firm maximizes profit, consumers will pay:

A. $2.50 per unit and consumer surplus will be 18.75. B. $3.50 per unit and consumer surplus will be 11.25. C. $3.50 per unit and consumer surplus will be 22.5. D. $2.00 per unit and consumer surplus will be 45.

Economics

If foreign residents buy U.S. Treasury securities to finance the budget deficit, then which of the following will likely occur?

A. a decrease in the trade deficit B. a reduction in the public debt C. there will be a trade balance D. an increase in the trade deficit

Economics