As a business type, corporations ________ in the United States
A) earn the majority of profits
B) are the most common
C) are the least common
D) are subject to the least amount of taxes
Answer: A
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
When the interest rate increases, the quantity demanded of money held to satisfy your
a. speculative motive rises b. precautionary motive rises c. transactions motive falls d. precautionary motive falls e. speculative motive falls
The demand curve for a monopolistic competitor is likely to be steeper than that of a monopolist
a. True b. False Indicate whether the statement is true or false
Maude is complaining about how much she pays in taxes now that the economy is finally doing really well. Even though she's in the same tax bracket as she was last year, she's paying $500 more in taxes this year, just because she earned more overtime pay this year. Maude's increased tax payment to the government is an example of:
A. automatic stabilizers. B. discretionary fiscal policy. C. expansionary fiscal policy. D. contractionary fiscal policy.