"If Congress cuts income taxes, demand for output is likely to increase" is a ________ statement about ________ policy.
A. positive; fiscal
B. positive; monetary
C. normative; monetary
D. normative; fiscal
Answer: A
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In the DMP model, a decrease in matching efficiency
A) has no effect on vacancies. B) reduces the unemployment rate. C) increases labor market tightness. D) increases the size of the labor force.
If the marginal propensity to consume is 0.8 and if government spending (G) rises by 50 while investment (I) falls by 20, by how much will equilibrium income rise?
a. 12 b. 10 c. 30 d. 120 e. 150
If a firm has increasing returns to scale at all levels of output, the
a. slope of its long-run total cost curve is always negative. b. slopes of its short-run average cost curves are always negative. c. slope of its long-run average cost curve is always negative. d. slope of its production function is always negative.
Property rights allowing individuals to own goods, services, and factors of production are most important in:
a. capitalistic economies. b. socialistic economies. c. planned economies. d. command economies.