If the government sought to end a recession, which of the following would be an appropriate policy?
a. Increase taxes
b. Decrease government purchases.
c. Decrease taxes and increase government purchases.
d. None of the above
c. Decrease taxes and increase government purchases.
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If a lower price for a Pepsi decreases the demand for a Coke, the cross elasticity value for Pepsi and Coke is
A) definitely negative. B) definitely equal to zero. C) definitely positive. D) definitely greater than one. E) possibly negative, positive, or zero, but there is not enough information to decide.
Refer to Table 14-5. Does Ming have a dominant strategy? If yes, what is it?
A) Yes, Ming's dominant strategy is to wait to see what Henri does first. B) No, Ming does not a dominant strategy - his best outcome depends on what Henri does. C) Yes, Ming's dominant strategy is to not to offer free pickup and delivery. D) Yes, Ming's dominant strategy is to offer free pickup and delivery.
In the graph showing the data for the short-run and long-run Phillips curve from 1961–1973, the shift back to the natural rate of unemployment is represented by the move from ______.
a. Point A to Point B
b. Point A to Point C
c. Point B to Point C
d. Point C to Point A
The term dollar votes in a market system means:
A. Inflation will occur if consumers don't spend wisely B. Voters may be offered dollars to help elect certain political candidates C. Government is responsible for determining what will be considered legal tender D. Consumers "vote" for certain products to be produced by how they spend their incomes