An example of "automatic stabilizers" is a rise in ________ causing the budget deficit to ________

A) real GDP, fall
B) real GDP, rise
C) government expenditures, fall
D) government expenditures, rise
E) the average tax rate, fall


A

Economics

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When the Fed buys government securities

A) reserves increase, leading to a decrease in the money supply by an amount more than the purchase of the government securities. B) reserves increase, leading to a increase in the money supply by an amount more than the purchase of the government securities. C) reserves decrease, leading to a increase in the money supply by an amount more than the purchase of the government securities. D) reserves decrease, leading to a decrease in the money supply by an amount more than the purchase of the government securities.

Economics

If the demand for a product is elastic, the quantity demanded changes by a larger percentage than the percentage change in price

Indicate whether the statement is true or false

Economics

Monopolistic competition is characterized by

A) relative ease of entry into the market. B) a standard, undifferentiated product. C) persistent long-run economic profits. D) production at minimum average cost in the long run.

Economics

Suppose two coffee snobs who must have their coffee and cream in exact proportions (each cup is 10 coffee per 1 unit cream) are invited to a weekend long event (during which they can easily consume 8 cups of coffee). Suppose Snob A is given 8 units of cream and Snob B is given 80 units of coffee. The contract curve in the Edgeworth box would be

a. a right angle connecting the lower left corner with the upper right corner. b. a curve (not a line) connecting the lower left corner with the upper right corner. c. a line connecting the lower left corner with the upper right corner. d. a right angle connecting the upper left corner with the lower right corner.

Economics