Fiscal policy includes all of the following EXCEPT
A. changing taxes.
B. policies that influence the rate of growth of the money supply.
C. changing government spending.
D. policies that influence aggregate demand.
Answer: B
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The figure above shows the market for umbrellas in Sunville. Suppose the quantity of umbrellas currently traded in Sunville is 199 per day. If one more umbrella is sold, the total surplus in Sunville will
A) decrease by $26.67. B) increase by $26.67. C) increase by $50.00. D) not change.
Suppose that the price of capital falls. Does this necessarily imply that the demand for laborwill fall? Explain
What will be an ideal response?
When a recession ends
A) the household sector decreases spending substantially. B) firms increase the amount of borrowing. C) interest rates decrease. D) households decrease spending on durable goods.
Which of the following is an example of a positive statement?
a. Workers with families should be paid at least the minimum wage. b. If crime rates were reduced, the world would be a better place in which to live. c. Marginal tax rates should be reduced for individuals in the highest tax brackets. d. An increase in the price of gasoline will cause a reduction in the amount purchased. e. Corrupt politicians ought to be voted out of office.