If there's unemployment in the economy, then government policy should
a. increase taxes and cut spending, which would shift AD to the left
b. increase taxes and spending, which would shift AD to the left
c. decrease taxes and spending, which would shift AD to the right
d. decrease taxes and increase spending, which would shift AD to the right
e. increase taxes and cut spending, which would shift AS to the left
D
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Refer to the scenario above. Which investment option will a risk-neutral individual choose?
A) He will choose to invest in Option A. B) He will choose to invest in Option B. C) He will choose to invest in Option C. D) He will be indifferent in investing in any of the three options.
Many developing countries make the government budget one of the primary tools of long-run industrial development, with the government owning and operating industries such as steel mills, airlines, and phone companies
Indicate whether the statement is true or false
In a commercial bank's T-account, reserves and outstanding loans are recorded as:
a. debts. b. profits. c. assets. d. liabilities.
Suppose an increase in the demand for labor results in an increase of $4 per hour in the equilibrium wage. How does the increase in the demand for labor affect the value of the marginal product of labor (VMPL)?
a. The VMPL increases by less than $4. b. The VMPL increases by $4. c. The VMPL increases by more than $4. d. The VMPL decreases by $4.