If the U.S. Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n):
A. Supply-side fiscal policy
B. Expansionary fiscal policy
C. Contractionary fiscal policy
D. Nondiscretionary fiscal policy
C. Contractionary fiscal policy
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Typically, the more time suppliers have to adjust to changing market conditions,
A) the more elastic the supply curve. B) the more elastic the demand curve. C) the less elastic the supply curve. D) the less elastic the demand curve.
All of the following are ways a business can earn economic profits except
A. Find new and better methods of production. B. Take above-average risks. C. Discover new products. D. Maximize implicit costs but not explicit costs.
If the price elasticity of demand for a good is 0.8, then a
A) 1 percent rise in the price leads to a 0.8 percent decrease in the quantity demanded. B) one dollar rise in the price leads to a 0.8 percent decrease in the quantity demanded. C) 1 percent rise in the price leads to an 80 percent decrease in the quantity demanded. D) 1 percent rise in the price leads to an 8 percent decrease in the quantity demanded.
Which of the following is true?
A) Much of the trade of the European Union (EU) countries is with EU countries. B) Industrialized countries tend to trade relatively little and largely with developing countries. C) Developing countries in Africa and South America tend to trade the most and largely with themselves. D) All of the above are true.