In order to stimulate the economy, the government uses fiscal policies such as reducing tax rates
a. True
b. False
Indicate whether the statement is true or false
True
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Which would be considered to be one of the factors that shift the aggregate supply curve in the short run? A change in ________.
A. net exports B. personal income taxes C. government regulation D. consumer spending
John raises bees to pollinate his apple trees. One of the bees just stung him. This is a(n)
A) private cost. B) social cost. C) internality. D) common property.
Answer the following statements true (T) or false (F)
1. Predatory pricing, such as the high price of pharmaceuticals, is legally protected under patent law. 2. If a monopolist chooses a low level of output, it can charge only a relatively low price. 3. In the real world, a monopolist can use marginal revenue and cost information to determine the profit-making combination of quantity and price because information on total revenues and costs is often not available. 4. Allocative efficiency refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. 5. One type of an imperfectly competitive market is called monopolistic competition. Monopolistically competitive markets feature a large number of competing firms, but the products that they sell are not identical.
At any given price level, which of the following fiscal policies will decrease real GDP demanded, other things constant?
a. Increase in fiscal spending on infrastructure b. Increase in net taxes c. Increase in transfer payments d. Increase in money supply