The macroeconomic policy planner's job is made difficult because of
a. inaccurate multiplier estimates.
b. timing problems.
c. disagreements over potential GDP.
d. uncertain forecasts.
e. All of the above are correct.
e
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Marginal profit is the profit
A. earned by a firm that is about to go out of business. B. calculated directly from the total cost curve. C. that is added by a one-unit increase in total output. D. earned for each dollar of cost increase.
Which of the following statements is true?
a. Fiscal policy is the manipulation of the nation's money supply to influence the nation's output, employment and price level. b. Discretionary fiscal policy is the deliberate use of changes in government spending and taxes to stabilize the economy. c. The tax multiplier is the change in aggregate demand resulting from an initial change in government spending. d. A budget deficit exists when government tax revenues exceed government spending.
If a potato farmer increases output and finds that total revenue increased less than total cost, then you know for sure that
a. profit had been maximized b. the farmer should not have increased output c. the farmer should produce even more output d. the farmer suffers a loss e. the farmer should have decreased output, not increased it
Which of the following represents a long-run adjustment?
a. the hiring of four additional cashiers by a supermarket b. a cutback on purchases of coke and iron ore by a steel manufacturer c. construction of a new assembly-line plant by a car manufacturer d. the extra dose of fertilizer used by a farmer on his wheat crop