If taxation becomes more progressive, the built-in stability in the economy will increase.
Answer the following statement true (T) or false (F)
True
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Political structure, or the process by which laws become enacted:
A. has no effect on policy created. B. is virtually the same everywhere. C. affects the outcome of policy. D. has one feature that is present in every government structure in existence.
Suppose we were analyzing the Turkish lira per euro foreign exchange market. If The Euro-Area's interest rate falls relative to Turkey and nothing else changes, then the:
a. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market falls, causing an uncertain change in the value of the euro. b. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing an appreciation of the euro. c. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro. d. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
Competitive firms that earn a loss in the short run should
a. shut down if P < AVC. b. raise their price. c. lower their output. d. All of the above are correct.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary