When the Fed lowers the growth rate of the money supply, it must take into account
a. only the short-run effect on production.
b. only the short-run effects on inflation and production.
c. only the long-run effect on inflation.
d. the long-run effect on inflation as well as the short-run effect on production.
d
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An increase in the federal budget deficit: a. only occurs when there is a deficit in the balance of trade
b. creates deflation. c. decreases aggregate demand. d. decreases the aggregate quantity demanded along a stationary aggregate demand curve. e. raises the equilibrium level of output and employment.
Time spent filling out tax forms, time spent keeping tax records, and government resources spent to enforce tax laws are examples of the __________ of the U.S. income tax system
Fill in the blank(s) with correct word
Refer to the graph shown. If the market price is $3, a perfectly competitive firm:
A. incurs a loss but can still cover its variable costs and some of its fixed costs. B. earns a profit. C. breaks even. D. incurs a loss and cannot cover its variable costs.
Answer the following statement(s) true (T) or false (F)
1. Public choice economists feel that government activities are the result of individual behaviors. 2. Competition has been eliminated from the public sector. 3. The individual consumption–payment link is created by majority rule. 4. Most voters are extremely liberal or extremely conservative. 5. Ideally, voters in a democracy should know about the candidates and the issues.