If the federal government wishes to move the economy out of a recessionary gap, the appropriate fiscal policy is a(n)
A. increase in taxes.
B. decrease in government purchases.
C. decrease in transfer payments.
D. None of the above is correct.
Answer: D
You might also like to view...
Refer to Table 14-5. Does Henri have a dominant strategy? If yes, what is it?
A) Yes, Henri's dominant strategy is to not offer free pickup and delivery. B) Yes, Henri's dominant strategy is to offer free pickup and delivery. C) Yes, Henri's dominant strategy is to wait and see what Ming does first. D) No, Henri does not have a dominant strategy - his best outcome depends on what Ming does.
With respect to the average cost curves, the marginal cost curve
a. intersects average total cost, average fixed cost, and average variable cost at their minimum points. b. intersects average total cost, average fixed cost, and average variable cost at their maximum points. c. intersects both average total cost and average variable cost at their minimum points. d. intersects average total cost where it is increasing and average variable cost where it is decreasing. e. intersects only average total cost at its minimum point.
Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were
a. public goods and proprietary knowledge. b. public goods but not proprietary knowledge. c. private goods and proprietary knowledge. d. private goods but not proprietary knowledge.
Suppose a stock market crash makes people feel poorer. This decrease in wealth would induce people to
a. decrease consumption, which shifts aggregate supply left. b. decrease consumption, which shifts aggregate demand left. c. decrease investment, which shifts aggregate demand left. d. decrease investment, which shifts aggregate demand right.