If the cyclically adjusted surplus as a percentage of GDP is zero one year and 2 percent of GDP the next year, it can be concluded that:
A. the federal government is lending money.
B. fiscal policy is contractionary.
C. fiscal policy is expansionary.
D. the federal government is borrowing money.
Answer: B
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If a firm has monopoly power in the market for its output, the marginal revenue product of labor
a. is no different than for a competitive firm. b. is less for each unit of labor than for a competitive firm. c. continuously slopes upward instead of turning downward. d. is greater for each unit of labor than for a competitive firm.
Consumers pay the part of a tax associated with a higher price for the product.
Answer the following statement true (T) or false (F)
Imports are:
A) positively related to income in the rest of the world and currency appreciation. B) positively related to income in the rest of the world and currency depreciation. C) positively related to domestic income and currency appreciation. D) positively related to domestic income and currency depreciation.
Which of the following is not an example of microfinance?
A. A loan to a small restaurant owner to buy a refrigerator. B. A loan to a woman to buy a sewing machine to make clothes to sell. C. A loan to a farmer for a goat that will give milk that the farmer can sell. D. A loan to a U.S.-owned electronics company to expand overseas.