In the U.S. economy, the effect on federal tax revenues and spending of an increase in the unemployment rate is to:
a. cut tax revenues and raise expenditures.
b. cut expenditures and raise tax revenues.
c. raise both tax revenues and expenditures.
d. cut both expenditures and tax revenues.
a
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In a constant-cost industry, price always equals
A) LRMC and minimum LRAC. B) LRMC and LRAC, but not necessarily minimum LRAC. C) minimum LRAC, but not LRMC. D) LRAC and minimum LRMC. E) minimum LRAC and minimum LRMC.
The new growth theory examines the role of
A) technology in economic growth. B) natural resources in economic growth. C) exports in economic growth. D) government in economic growth.
An increase in the price of ice cream is likely to cause:
A. a movement to the left along the demand curve for ice cream. B. an inward shift of the demand curve for ice cream. C. an outward shift of the demand curve for ice cream. D. a movement to the right along the demand curve for ice cream.
In a period of inflation real interest rates will be greater than nominal interest rates
a. True b. False Indicate whether the statement is true or false