Refer to Figure 21-4. Which of the following is consistent with the graph depicted?
A) an increase in household income
B) an increase in tax revenues collected by the government
C) an increase in transfer payments to households
D) an increase in the proportion of income after net taxes used for consumption
D
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During a business cycle expansion, total production ________ and total employment ________
A) decreases; increases B) increases; increases C) increases; decreases D) decreases; decreases
Which of the following is true for the European Central Bank (ECB)?
A) its executive board meets less often than the FOMC B) the members of its executive board have lifetime appointments C) it is a more decentralized system than the Federal Reserve D) all of the above E) none of the above
Because of the free-rider problem,
a. private markets tend to undersupply public goods. b. the federal government spends too many resources on national defense and not enough resources on medical research. c. fireworks displays have become increasingly dangerous. d. poverty has increased.
If consumers find that there are substantial transaction costs to purchasing a product, then
A. equilibrium price and quantity both fall. B. overall consumer demand is the same at each price. C. overall consumer demand is greater at each price. D. overall consumer demand is less at each price.