If increases in government spending lead to inflation, the value of the multiplier is reduced.
Answer the following statement true (T) or false (F)
True
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You are considering buying a store. In order to better access your return on the investment, you must ask the storeowner for the figures on days when
a. Sales are high, costs are low b. Sales are low, costs are high c. Both sales and costs are high d. All of the above
Cartel members have an incentive to cheat on the cartel because:
a. the cartel does not maximize profits. b. the cartel price is the competitive price. c. each member's output quota is too high. d. each member's MR is not equal to the cartel's MC. e. the industry profit would be higher under competitive conditions.
According to the classical economists, if there is a recession, the government should ________.
Fill in the blank(s) with the appropriate word(s).
Economic theory looks at social coordination as a process of
A) continuing mutual adjustments to the situations created by the actions of others.
B) continuous adjustment of extremes to conform to the average.
C) passing information up from below and instructions or commands down from above.
D) sacrificing personal interest to the public or general interest.
E) sacrificing the public interest to self-interest.