When an economy is in a recession, discretionary fiscal policy would call for ________, and the automatic stabilizers would ________.
A. lowering tax rates; lower tax revenues
B. increasing tax revenues; increase tax rates
C. increasing tax rates, lower tax revenues.
D. increasing tax rates; increase tax revenues
Answer: A
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As presented in the textbook, gross domestic product is the sum of annual
A) business profits (both incorporated and unincorporated) plus all tax receipts of federal, state, and local governments. B) consumption, saving, and investment. C) expenditures for new final goods by consumers, investors, government. D) total sales of all business firms. E) wages and salaries paid or received.
There has been catch-up among ________, but there has not been catch-up among ________
A) developing countries such as Niger; industrialized countries such as Japan B) developing countries such as Niger; all countries of the world C) industrialized countries such as Japan; all countries of the world D) all countries of the world together; industrialized countries such as Japan
Refer to the above diagram. If aggregate supply shifts from AS1 to AS2, then the price level will:
A. increase and real domestic output will decrease. B. decrease and real domestic output will decrease. C. decrease and real domestic output will increase. D. increase and real domestic output will increase.
Based on the graphs showing price discrimination in movie ticket prices, if the theatre charges $9 per ticket at the evening show, ______.
a. it will maximize profits
b. MR will be greater than MC
c. MR will be less than MC
d. it will sell too few tickets