Average total cost is equal to average variable cost minus average fixed cost
Indicate whether the statement is true or false
FALSE
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
One suggested method of reducing excessive risk-taking by SIFIs is to require them to hold ________ capital when credit is expanding rapidly and ________ capital when credit is contracting
A) less; more B) more; no C) more; less D) less; no
All of the following will shift the AD curve to the right except a(n):
a. increase in consumer confidence. b. decrease in taxes. c. increase in government spending. d. increase in the MPC. e. increase in transfer payments.
In the classical and monetarist aggregate demand curves:
a. money is the primary factor driving changes in aggregate demand. b. taxes can never shift aggregate demand. c. government spending can never shift aggregate demand. d. changes in aggregate demand drive most recessions. e. both a and d.