Automatic stabilizers have the effect of
A. increasing aggregate demand during a recessionary gap.
B. increasing long-run aggregate supply during a recessionary gap.
C. increasing aggregate demand during an inflationary gap.
D. increasing long-run aggregate supply during an inflationary gap.
Answer: A
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The Second Bank of the United States lost its charter, in part, because Andrew Jackson effectively argued to the voting members of Congress that the "central" bank was a monopoly and largely influenced by the corrupt and fraudulent behavior of a
wealthy minority and foreign investors. Indicate whether the statement is true or false
Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is
What will be an ideal response?
The market supply curve can be found by
A) Adding the quantities the firms could supply at a break-even price. B) Adding the supply response for all firms for a given set of prices. C) Looking at the quantity supplied in the previous period. D) None of the above.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. After looking at the production possibilities for both Tom and Jerry, we can conclude that:
A. Tom has the comparative advantage in fence production. B. No comparative advantage exists. C. Jerry has the comparative advantage in dish production. D. Tom has the comparative advantage in dish production.