If the economy is in a recession, the structural deficit should equal the cyclical deficit.
Answer the following statement true (T) or false (F)
False
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Refer to the table above. If each country were to reduce production of its comparative disadvantage good by 1 unit, world output of wine would rise by
A) 1.5 units. B) 2 units. C) 3 units. D) 3.5 units.
Which of the following is an example of a progressive tax?
a. Social Security tax b. federal income tax c. excise tax d. payroll tax
The figure above shows a perfectly competitive firm. In the short run, the firm will shut down
A) only if the AVC of producing 10 units is less than $20. B) only if the AVC of producing 10 units is more than $20. C) only if the AVC curve reaches its minimum before 10 units are produced. D) always.
A Monetarist-oriented econometric model is likely to emphasize that monetary policy affects economic activity
A) directly through changes in government spending. B) directly through changes in the money supply. C) indirectly through changes in velocity. D) indirectly through changes in money demand.