When an economy dips into recession, automatic stabilizers will:
A. enlarge the budget deficit (or reduce the surplus).
B. reduce the budget deficit (or increase the surplus).
C. ensure that the budget remains in balance.
D. expand the supply of money and, thereby, stimulate aggregate demand.
Answer: A
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Managers can increase firm profits by:
A) increasing revenue only. B) decreasing costs only. C) increasing revenue and decreasing costs. D) none of the above.
In a perfectly competitive market, entry and exit are the driving forces behind a process that, in the long run, pushes the price _____
a. to the zero-profit point b. to the shutdown point c. below the average variable cost d. above the zero-profit point
Describe the general shape of the average-fixed-cost curve
In what year did the housing bubble burst?
A. 2000 B. 2006 C. 2008 D. There was no such event.