When total output, income, employment, and trade decline for 6 to 12 months, the economy is in what part of the business cycle?
What will be an ideal response?
When these real variables decline, the economy is in the recession phase of the business cycle.
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Explain why these data do not communicate whether the regulations outlined by the CAAA of 1990 are efficient.
According to the EPA’s prospective analysis of the 1990 to 2010 period, total social benefits (TSB) associated with the CAAA of 1990 are estimated at $690 billion ($1990) and the comparable total social cost (TSC) estimates are $180 billion ($1990).
Consider gardening books. What will happen to the market for these books as gardening becomes more popular and simultaneously printing costs increase?
A) The price of gardening books definitely increases. B) The quantity of gardening books definitely increases. C) The price of gardening books might increase or decrease. D) The quantity of gardening books definitely stays the same.
The funding of public education is
A) a private program. B) a subsidy program. C) done by voluntary contributions. D) provided by Social Security.
Government can
a. Create wealth by not interfering in the markets in any way what so ever b. Not affect wealth in the markets c. Create wealth by enforcing property rights and contracts d. Create wealth by making choice decisions for the market