Which of the following is a reason why the economy has tipped into recession less frequently in recent decades?
a. The size of government spending and taxes has increased in the second half of the twentieth century.
b. The size of government spending and taxes has decreased in the second half of the twentieth century.
c. The size of government spending has increased and taxes have decreased in the second half of the twentieth century.
d. The size of government spending has decreased and taxes have increased in the second half of the twentieth century.
a. The size of government spending and taxes has increased in the second half of the twentieth century.
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Exhibit 30-5
?
A. P4 - P2. B. P3 - P1. C. P2 - P1. D. P3 - P2. E. a and b
An effluent fee is a
A) subsidy given to the producer of a positive externality. B) charge to a polluter that gives the right to discharge pollution into the air. C) fine imposed on a polluter for dumping illegal pollution. D) charge for a public good.
When a firm experiences steadily declining long-run average total costs as it produces more output, it is known as a(n)
A) oligopoly. B) rent seeker. C) natural monopoly. D) monopolistic competitor.
During the period 2001-2004, the U.S. Federal Reserve lowered nominal interest rates on the dollar by more than the European Central Bank (ECB) did on the euro, a move that most market participants viewed as temporary. What was the effect on the dollar-euro exchange rate?
a. The dollar depreciated against the euro. b. The dollar appreciated against the euro. c. There was no change in the dollar-euro rate because expectations adjusted. d. There was no change in the dollar-euro rate because real interest rates were unchanged.