If Congress authorized the President to lower tax rates or to initiate spending projects when aggregate demand was inadequate, which consequence could be predicted most confidently?

A) Aggregate spending would be more stable over time.
B) Recessions would be less severe.
C) Recessions would occur less frequently.
D) The political power of the President would increase.
E) We would experience a lower rate of inflation.


D

Economics

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In a perfectly competitive market

A. demand facing the industry is perfectly elastic. B. a firm must lower price to attract more customers. C. the additional revenue from selling one more unit of output is less than price. D. all of the above E. none of the above

Economics

Refer to the graph shown that depicts a third-party payer market for prescription drugs. If the co-payment is $2 per pill, what will be the quantity demanded?

A. 15 B. 30 C. 60 D. 45

Economics

Assume that a very unusual production process involves increasing marginal productivity that appears to have no end. What would the total productivity function look like? Comment on the likelihood of such a function in the real world

What will be an ideal response?

Economics