Contractionary fiscal policy could be carried out by
A. an increase in government spending and/or a decrease in taxes.
B. an increase in transfer payments.
C. a decrease in government spending and/or an increase in taxes.
D. All of the choices are correct.
C. a decrease in government spending and/or an increase in taxes.
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Which of the following transfer payments is included in GDP?
A) Social Security payments B) welfare payments C) veteran's benefits D) none of the above
In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, an increase in the money supply does all of the following EXCEPT:
a. increase interest rates. b. increase income. c. increase the IS curve. d. increase inflation.
Figure 17-12
In , with a tariff of $0.50 per unit and a world price of $1.00,
a.
25 units will be exported
b.
25 units will be imported
c.
50 units will be exported
d.
50 units will be imported
e.
10 units will be exported
a) Using the data from graph, calculate the firm's total profit. (b) If the firm operates at optimum efficiency, how much will its output be? (c) If the firm were a perfect competitor, how much will its price be in the long run?
