Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output
B. D; an expansionary
C. B; recessionary
D. D; a recessionary
Answer: D
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Someone who sells commodity futures is
A) hedging. B) purchasing risk. C) selling risk. D) simultaneously purchasing and selling risk. E) not necessarily doing any of the above.
According to research, after the Tax Reform Act of 1986, the effective marginal tax rate on equipment has
A. decreased substantially. B. stayed basically the same. C. increased. D. decreased slightly.
New York consumers are charged five cents for every can or bottle of soda or beer that they purchase. Consumers are refunded five cents for every can or bottle that they return to a recycling center. Which environmental policy is used by New York?
a. Pollution charge b. Cap-and-trade c. Marketable permit program d. Command-and-control regulation
If $1 is worth 0.70 euros, then 1 euro is worth:
A. $7.43. B. $0.70. C. $1.43. D. $7.00.