What would be the most likely reason for a government to introduce a tax decrease?
a. impeding a monopoly
b. reducing unemployment
c. lowering interest rates
d. overcoming inflation
b. reducing unemployment
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Suppose the economy is experiencing a recessionary gap. In the long run, if aggregate demand does not change, the following events happen: the money wage rate ________, unemployment ________, and the price level ________
A) falls; rises; falls B) falls; falls; falls C) rises; rises; rises D) rises; falls; rises
Under the gold standard, to increase the money supply in the country, the government must
A) increase the value of the country's currency on foreign exchange markets. B) simply print more currency. C) have enough gold to back up the increase in the money supply. D) buy foreign currencies with dollars to increase foreign currency reserves.
What does the Herfindahl-Hirschman Index value near zero imply about the market?
a. Monopoly b. Perfect competition c. Monopolistic competition d. Oligopoly
Which of the following is a cost of economic growth?
A. the sacrifice of current consumption B. inflation in consumption goods C. the sacrifice of future consumption D. excessive depletion of a nation's natural resources