If the government uses fiscal policy to close a recessionary gap, government
A) expenditure must be increased by more than the gap because of the government expenditure multiplier.
B) taxes must be cut by more than the gap because of the tax multiplier.
C) expenditure can be increased by less than the gap because of the government expenditure multiplier.
D) taxes can be raised by less than the gap because of the tax multiplier.
E) taxes must be raised by more than the gap because of the tax multiplier.
C
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Globalization ________ the wages of workers in the exporting industries and ________ the wages of workers in the import-competing industries.
A. raises; raises B. lowers; raises C. raises; lowers D. raises; does not change
Figure 5-17
Which of the following statements about Figure 5-17 must be correct?
A. The consumer pays a higher dollar price per unit for good Y at A than at D. B. The consumer pays the same dollar price per unit for good Y at A and at B. C. The consumer pays a higher dollar price per unit for good X at D than at A. D. The consumer pays a higher dollar price per unit for good X at A than at C.
All of the following can create an oligopolistic structure EXCEPT
A) low barriers to entry. B) economies of scale. C) government licensing rules. D) mergers.
GDP does not directly measure those things that make life worthwhile, but it does measure our ability to obtain many of the inputs into a worthwhile life
a. True b. False Indicate whether the statement is true or false