The Keynesian recommendation for a policy response to a recession consists of
A. increased government spending with tax increases.
B. increased government spending with tax cuts.
C. decreased government spending with tax cuts.
D. decreased government spending with tax increases.
Answer: B
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The economic model of consumer behavior explains how consumers' tastes and preferences are formed
Indicate whether the statement is true or false
Refer to Scenario 17.5. If low effort is exerted, expected income is
A) $5000. B) $5500. C) $6000. D) $6500. E) $7000.
Refer to the above figure. Demand is
A) perfectly elastic. B) unitary elastic. C) perfectly inelastic. D) undetermined without more information.
In an auction where the bidders values are $400, $500, $650, $800 and $850, the highest two bidders form a bid-rigging cartel. What would have the winning bid been if there was no cartel?
a. $501 b. $651 c. $801 d. $846