A) Given the information above, if full employment GDP were 2,000, would there be an inflationary gap or a recessionary gap? B) What two fiscal policy measures would you recommend to remove the gap?
A) inflationary gap; B) raise taxes, lower government spending
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A strategy that limits defection in a repeated prisoner's dilemma game is:
A. a cartel. B. a tit-for-tat strategy. C. a Nash equilibrium. D. an ultimatum bargaining game.
Which of the following would cause the demand for labor to change?
a. changes in the supply curve of labor b. changes in the workers' opportunity costs c. changes in the wage rate d. movements along the demand curve for labor e. changes in the price of the good
A central government collected taxes totaling $120 billion in the previous year. It's expenditure during the year was roughly the same. This is an example of a
a. balanced budget. b. surplus budget. c. deficit budget. d. zero budget.
Supply and demand is an economic tool that analyzes the total costs and benefits of alternative policies to different groups, such as producers and consumers.
a. true b. false