If the government wants to generate a surplus as a contraction measure, the most effective method of doing so is to
a. hold taxes and decrease spending.
b. increase taxes and hold or decrease spending.
c. decrease both spending and taxes.
d. increase both taxes and spending.
b. increase taxes and hold or decrease spending.
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Use the figure below to answer the following question.
What area represents society's total surplus after the government imposes the excise tax on the market?
A. triangle $1c$9 plus triangle $21a$13 B. triangle abc C. square $13ac$9 plus triangle abc D. triangle $1c$9 plus triangle $21a$13 plus rectangle $13ac$9
An insolvent bank is one that owes more money to its depositors than it has in cash, loans, and other assets
Indicate whether the statement is true or false
Pumpkins are grown in New Mexico with the aid of fertilizer. Hence, fertilizer is a partial answer to which of the three economic questions?
What will be an ideal response?
In order to determine a household's budget line, you must know the
A) prices of the goods bought and the household's income. B) prices of the goods bought, but not the household's income. C) household's income, but not the prices of goods bought. D) household's income, prices of the goods bought, and the household's preferences.