In order to ________, a government must decrease spending and increase taxation.
A. increase aggregate demand
B. decrease aggregate demand
C. increase aggregate supply
D. decrease aggregate supply
Answer: B
You might also like to view...
Grapes can be used to produce wine or raisins. Which graph in Figure 4-6 best depicts the effects on the U.S. raisin market of a decline in purchases of domestic wine?
A. 1 B. 2 C. 3 D. 4
Consumers are sovereign when
A) prices are decided by sellers. B) a few consumers exercise coercion on sellers and other consumers. C) they can prevent market failure. D) they have the freedom to decide what they wish to purchase.
Which of the following is not true in the long run under perfect competition? a. There is no incentive for firms to enter or exit the industry. b. Economic profit is zero
c. Long-run marginal cost is minimized. d. Long-run average total cost is minimized.
Government rules and regulations can affect
A) market prices. B) the strategy of business. C) the costs of factors of production. D) all of these choices.