All of the following are likely to be effective at eliminating a recessionary gap except one. Which is the exception?
a. Reducing Social Security payments to beneficiaries
b. Reducing personal income taxes
c. Increasing government expenditures on the interstate highway network
d. Increasing farm subsidies
e. Reducing corporate income taxes
a
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The table above shows the exchange rates between various currencies and the U.S. dollar. Between 2015 and 2016, the Canadian dollar ________ against the U.S. dollar and the Japanese yen ________ against the U.S. dollar
A) depreciated, depreciated B) appreciated, appreciated C) appreciated, depreciated D) depreciated, appreciated
An economic theory is also known as an economic
A) model. B) prediction. C) conclusion. D) assumption.
Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q1 units of output. This level of output, Q1,
a. exceeds the level of output at which marginal revenue equals marginal cost. b. exceeds the level of output at which marginal cost equals average total cost. c. falls short of the level of output at which price equals marginal cost. d. exceeds the firm's efficient scale of output.
Suppose that opportunity costs in India and Australia are constant. In India, maximum feasible hourly production rates are either 0.3 unit of cloth or 0.2 unit of food. In Australia, maximum feasible hourly production rates are either 0.5 unit of cloth
or 0.5 unit of food. It is correct to state that A) India has a comparative advantage in producing cloth. B) India has a comparative advantage in producing both cloth and wheat. C) India has no comparative advantage in producing cloth or wheat. D) Australia has a comparative advantage in producing cloth.