During a recession, the quickest way for the government to increase economic output would be to
A. increase government purchases and reduce taxes.
B. reduce government purchases and increase taxes.
C. reduce government purchases and reduce taxes.
D. increase government purchases and increase taxes.
Answer: A
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Factors of production are grouped into four categories
A) land, labor, capital, entrepreneurship B) land, labor, capital, money C) land, capital, money, entrepreneurship D) labor, capital, money, entrepreneurship
Neither intermediate goods nor used goods are included in GDP. Explain why these expenditures are not included in GDP
What will be an ideal response?
Why does an indifference curve slope downward and why is it bowed toward the origin?
What will be an ideal response?
Which of the following statements is not correct?
a. Monopolistic competition is different from monopoly because monopolistic competition is characterized by free entry, whereas monopoly is characterized by barriers to entry. b. Both monopolistic competition and oligopoly fall in between the more extreme market structures of competition and monopoly. c. Monopolistic competition is different from oligopoly because each seller in monopolistic competition is small relative to the market, whereas each seller can affect the actions of other sellers in an oligopoly. d. Both monopolistic competition and perfect competition are characterized by product differentiation.