If current aggregate expenditure equals current production, an economy is in equilibrium
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
During the recession of 2001,
a. there were a number of proposals for tax increases or spending cuts to stir the economy, but they failed due to worries about their effects on the already large deficit. b. a series of tax cuts were passed, though they only occurred in late 2001. c. all the proposed tax and spending cuts were approved in order to motivate the economy and reduce the large deficit. d. the cyclical deficit increased but the structural deficit remained unchanged. e. None of the above
The joining of a firm with another to which it sells an output or from which it buys an input is known as
A) a conglomerate merger. B) a horizontal merger. C) a vertical merger. D) economies to scale.
Which of the following is an example of automatic fiscal policy?
A) The government deliberately raises taxes. B) The government deliberately lowers taxes. C) The government deliberately increases spending. D) The government deliberately decreases spending. E) none of the above
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.According to the figure shown, if Joe puts forth high effort, then Sarah should:
A. give an ultimatum. B. put forth high effort. C. put forth low effort. D. leave school.