In order to maintain a balanced budget every year, during a recession the government would have to
A. Decrease the money supply.
B. Increase spending or decrease taxes or both.
C. Decrease spending or increase taxes or both.
D. Increase the money supply.
Answer: C
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If your nominal income in 2014 is $50,000, and prices increase by 50% between 2014 and 2017, then to have the same real income, your nominal income in 2017 must be
A) $50,000. B) $75,000. C) $100,000. D) $150,000.
Inflationary GDP is the amount by which equilibrium real GDP falls short of the full employment level of GDP.
Answer the following statement true (T) or false (F)
Thomas Malthus's model made the mistake of failing to consider:
A. comparative advantage. B. scarcity. C. technological progress. D. inflation.
What movement would show a change in autonomous expenditure?
What will be an ideal response?