In the United States during the 1930s:
A. government spending and taxes both increased, resulting in zero net fiscal expansion.
B. government spending and taxes both decreased, resulting in a net fiscal contraction.
C. government spending increased and taxes decreased, resulting in a fiscal expansion.
D. government spending decreased and taxes increased, resulting in a fiscal contraction.
Answer: A
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If the market for hula-hoops is characterized by a very inelastic supply curve and a very elastic demand curve, an inward shift in the supply curve would be reflected primarily in the form of
a. higher prices. b. higher output. c. lower prices. d. lower output.
Production and consumption decisions are dependent on each other
Indicate whether the statement is true or false
The market system does not produce public goods because
A. there is no need or demand for such goods. B. public enterprises can produce such goods at lower cost than can private enterprises. C. their production seriously distorts the distribution of income. D. private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them.
In the 1980s, the U.S. had recessions in ________ and __________.
Fill in the blank(s) with the appropriate word(s).