Use the following graph to answer the next question.
Assume that the economy is in a rapid expansion with a price level of P2 and output level Q2. The government then adopts an appropriate discretionary fiscal policy. What will be the most likely new equilibrium price level and output?
A. P2 and Q4
B. P1 and Q3
C. P1 and Q1
D. P2 and Q2
Answer: C
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Using the data in the table above, if the price of a stapler is $5, then there is ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied
A) a surplus; is greater than B) a surplus; is less than C) a shortage; is greater than D) a shortage; is less than E) neither a surplus nor a shortage; equals
According to international comparisons, which nation had the highest hourly pay in U.S. dollar terms in 2011?
A. United States. B. Germany. C. Denmark. D. Sweden.
How have some patients been harmed by Medicare reimbursement caps?
A. They have had to wait too long for essential procedures. B. They have had to undergo unnecessary procedures, so that the hospital can get a higher reimbursement amount. C. They have been discharged from the hospital too soon, so that the hospital can cut costs. D. They have been kept in the hospital too long, so that the hospital can get a higher reimbursement amount.
Economic Value Added:
A. can backfire if it fails to take into account the limited decision rights of lower-level employees. B. can backfire if top-level managers do not add any value. C. is used to reward the small shareholders fairly. D. is used to reduce inventory expenditure.