To combat a recession with discretionary fiscal policy, Congress and the president should
a. decrease government spending to balance the budget.
b. decrease taxes to increase consumer disposable income.
c. lower interest rates and increase investment by increasing the money supply.
d. raise taxes on interest and dividends, but not on personal income.
b. decrease taxes to increase consumer disposable income.
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Refer to Figure 9-1. Based on the graph of the labor market above, if a minimum wage of $8 per hour is imposed, which of the following will result?
A) The quantity of labor demanded by firms will rise. B) The quantity of labor demanded by firms will fall. C) The unemployment rate will fall. D) Both A and C will occur.
Microsoft's government-granted exclusive right to make and sell the Windows operating system is called a
In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the participation rate?
A. 40 percent B. 95 percent C. 57 percent D. 60 percent
The balance of payments:
A. can only be expanded when the government has foreign exchange reserves. B. is always zero C. with some nations is different than it is with others D. is negative when the nation runs a trade deficit