A contractionary fiscal policy is a policy that:
A. reduces aggregate demand by decreasing taxes.
B. reduces aggregate demand by decreasing government purchases.
C. reduces aggregate demand by decreasing interest rates.
D. reduces aggregate demand by decreasing money supply.
Answer: B. reduces aggregate demand by decreasing government purchases.
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The table above gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive
If the demand for labor decreases by 200 hours per day, the equilibrium wage rate falls to ________ an hour and the quantity of labor employed ________ hours per day. A) $10; remains at 400 B) $10; decreases to 300 C) $20; increases to 400 D) $5; remains at 200
More education and training usually lead to higher levels of
a. productivity. b. population. c. pollution. d. import protectionism.
The quantity supplied of corn is the number of bushels that corn farmers want to sell under the current market conditions, while the supply of corn is a set of price-quantity pairs showing the amounts that farmers wish to sell at various hypothetical prices. According to the law of supply, a rise in the price of corn will cause a rise in the quantity supplied of corn. Non-price factors that positively affect corn growers (such as improved weather conditions, better agricultural technology, and lower costs of fertilizer, seed, labor, and other inputs) would cause a rise in the supply of corn. A rise in quantity supplied is shown by moving up and to the right along the supply curve, and a rise in supply is shown by shifting the supply curve down and to the right.
What will be an ideal response?
BP has
A) only used external markets. B) used internal markets successfully to reduce emissions. C) used internal markets to deal with a network externality. D) none of these choices.