If Congress votes to increase government purchases and at the same time decrease personal income taxes, they
a. have decided to balance the federal budget.
b. have voted for the proper policy to counteract a recessionary gap.
c. have voted for the proper policy to counteract an inflationary gap.
d. are trying to achieve a federal budget surplus.
b
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Discuss the correct and incorrect economic analysis in the following statements
"If a disease kills a large number of turkeys, the supply of turkeys will decrease. This will result in a price increase, which will then cause the supply of turkeys to increase."
A price ceiling is
A) the lowest price a seller can charge without losing all of its customers. B) a legal minimum price below which a good or service cannot be sold. C) a legal price above which a good or service cannot be sold. D) a nonprice rationing device.
In the above figure, total revenue for this profit-maximizing monopolistically competitive firm is
A) $50,000. B) $91,000. C) $96,000. D) $100,000.
Which of the following would NOT increase British exports to the United States?
A. an appreciation of the British pound B. a depreciation of the British pound C. an appreciation of the U.S. dollar D. an increase in British demand for U.S. exports