Which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?
a. Increased government spending.
b. Higher taxes.
c. A balanced-budget reduction in both spending and taxes.
d. An expansion in the money supply.
a
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In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?
What will be an ideal response?
The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for computers after technological advances in making computers occur?
A) Graph A B) Graph B C) Graph C D) Graph D
Corporate income taxes
a. make recessions and inflationary episodes more severe b. make recessions and inflationary episodes less severe c. make recessions more severe and inflationary episodes less severe d. make recessions less severe and inflationary episodes more severe e. have no effect on the severity of recessions and inflationary episodes
Average fixed costs rise continuously as quantity of output rises.
Answer the following statement true (T) or false (F)