Assume that the economy is in a recession with a price level of P1 and output level Q1. The government then adopts an appropriate discretionary fiscal policy. What will be the most likely new equilibrium price level and output?
Refer to the graph above.
A. P2 and Q4
B. P1 and Q1
C. P2 and Q2
D. P1 and Q3
C. P2 and Q2
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Joanne left her last job, in which she was earning $50,000, in order to form her own consulting business. Her revenues for the first year of consulting were $200,000
During that year, she hired two assistants for $25,000 each and spent $25,000 on office equipment. In addition, she incurred $75,000 in miscellaneous expenses. Her economic profit that first year was A) $0. B) $50,000. C) $200,000. D) $75,000.
In the perfectly competitive model, all firms are assumed to be producing: a. products that are heavily advertised. b. differentiated products
c. identical products. d. complementary products.
An important feature of representative democracy is the incentive and political power it offers participants to employ legislation to increase their wealth, either through direct transfers or through favorable public expenditures and regulations. Such benefits are called ________ , and the activity that interest groups undertake to elicit these special favors is called ________
a. taxes; tax-seeking b. dividends; portfolio management c. rents; rent-seeking d. interest; investment
What is a firm's short run supply curve?
What will be an ideal response?