As GDP falls, automatic stabilizers run the federal budget in a deficit direction
a. True
b. False
Indicate whether the statement is true or false
True
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An increase in the price level in the United States will reduce exports and increase imports
Indicate whether the statement is true or false
In the Thomas (1954) model,
(a) all nations near the Atlantic Ocean were considered one economic unit. (b) laborers, capital and other resources freely move to those users with the highest net returns. (c) the European economy moved inversely in relation to the U.S. economy and vice versa. (d) all of the above are true.
In the short run, which are most important in determining changes in output?
a. marginal costs and revenue b. total costs and revenue c. average costs and revenue d. fixed costs
A drawback of separating ownership from control by creating a firm is:
A. synergies of team production. B. the principal-agent problem. C. the losses of specialization. D. increased transaction costs.