Refer to the graph above. If the price of the product decreases from $6 to $5 because of a decrease in demand (not shown), total revenue would:
A. increase by $300.
B. decrease.
C. increase by $100.
D. stay the same.
Answer: B
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According to the BEA, in the second quarter of 2012 business spending on equipment and software rose by 4.7 percent. Using the expenditure approach, this change increases
A) gross private domestic investment. B) government expenditure on goods and services. C) net exports of goods and services. D) personal consumption expenditures.
By restricting foreign lending, a country with sufficient market power can
A. increase world production. B. lower world interest rates. C. bid up the rate that foreign borrowers have to pay. D. bid up the rate that domestic lenders get after taxes.
Government policies can be developed to work against the problems of unemployment and inflation because government can
a. decrease aggregate demand to combat unemployment and increase aggregate demand to combat inflation b. increase aggregate supply to combat unemployment and decrease aggregate demand to combat inflation c. increase aggregate supply to combat unemployment and decrease aggregate supply to combat inflation d. increase aggregate demand to combat unemployment and increase aggregate demand to combat inflation e. increase aggregate demand to combat unemployment and decrease aggregate demand to combat inflation
Why are income taxes on capital income more powerful than those on labor income?
What will be an ideal response?