Refer to the information provided in Figure 24.5 below to answer the question(s) that follow.
Figure 24.5Refer to Figure 24.5. If the economy is in equilibrium and the government increases taxes by $100 billion, equilibrium aggregate output ________ to $________ billion.
A. decreases; 1,300
B. decreases; 1,000
C. increases; 1,700
D. decreases; 1,500
Answer: A
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Use the following diagram to answer the question.
Which of the following best depicts the change if apples are grown using better watering technology for the trees, which allows farmers to know if the trees are being over or under-watered?
A. shift from S1 to S2 B. shift from S2 to S1 C. movement from a to b D. movement from b to a
Under what conditions does an oligopoly market result in the same outcome as perfect competition? What does this imply for the oligopoly's long-run profits?
What will be an ideal response?
The key explanation for the prevalence of waterway pollution is
A. the inclusion in production of all costs involving use of the waterway. B. that there are private costs but no costs to society. C. that waterways are not private property and can be used free of charge. D. that waterways are subject to the market’s normal control procedures.