Name two macroeconomic variables that decline when an economy goes into recession, and name one macroeconomic variable that rises
Real GDP and investment both decline, unemployment rises.
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The figure above shows the market for milk in Cowland. If a subsidy paid to producers of $1 per gallon of milk is introduced, what is the amount, including the subsidy, that suppliers keep per gallon?
A) $3.00 a gallon B) between $3.00 and $4.00 per gallon C) $4.00 a gallon D) between $4.00 and $5.00 per gallon
In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find
a. True b. False Indicate whether the statement is true or false
Crowding out occurs when public provision of a good substitutes for private provision.
A. True B. False C. Uncertain
A risk-averse individual would:
A. prefer a risky prospect with an expected value of $5 to a certain amount of $5. B. prefer $5 with certainty to a risky prospect with the expected value of $50. C. be indifferent between a risky prospect with an expect value of $5 and a certain amount of $5. D. prefer $5 with certainty to a risky prospect with the expected value of $5.