To close a recessionary gap through fiscal policy, the government should
A) decrease government spending in order to increase aggregate supply.
B) increase government spending in order to increase aggregate demand.
C) reduce taxes in order to stimulate investment, and thus increase aggregate supply.
D) increase government spending and taxes in order to both increase aggregate demand and aggregate supply.
B
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Suppose your bank pays you 5 percent interest per year on your savings account. If prices increase by 5 percent per year over that time, approximately how much real value do you gain by keeping $100 in the bank for a year?
A) $0 B) $1 C) $3 D) $6
For a perfectly competitive firm, the region of the marginal cost curve that is above its average variable cost curve is identical to the firm's _____
a. demand curve b. supply curve c. average total cost curve d. average variable cost curve
Regulation of a firm in a monopolistically competitive market
a. usually implies a very small administrative burden. b. will lower the firm's costs. c. is commonly used to enhance market efficiency. d. is unlikely to improve market efficiency.
The highest valued alternative that must be given up in order to choose an option is called the:
a. opportunity cost. b. utility cost. c. scarcity expense. d. disutility option.