If net taxes paid by households increase:
A. public saving will decrease.
B. transfer payments to households will decrease.
C. private saving will decrease.
D. private saving will increase.
Answer: D
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
In the long run, in a monopolistically competitive market, price will be
A) equal to MR. B) equal to MC. C) greater ATC. D) equal to ATC.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Describe how a market for externality rights or cap-and-trade system would work in terms of supply and demand
Please provide the best answer for the statement.