According to classical economists, the government should increase government purchases when
A. the economy is in a recession.
B. the economy is likely to go into a recession in the next six months to a year.
C. inflation is lower than its targeted level.
D. the benefits of the spending exceed the costs.
Answer: D
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Today the typical American pays approximately what percent of income in taxes, including all federal, state, and local taxes?
a. 5 percent b. 25 percent c. 35 percent d. 50 percent
The long-run aggregate supply curve will shift to the left when
A. technology improves. B. the price level increases. C. population decreases. D. new sources of natural resources are discovered.
If the MPS is 0.3, the MPC is
A. -0.3. B. 0.7. C. 1. D. 1.3.
The table above shows data reported by the Office for National Statistics for the United Kingdom in September 2000. In September 2000, the labor force participation rate is
A) 34.8 percent. B) 40.3 percent. C) 63.1 percent. D) 58.3 percent. E) 59.7 percent.