When the economy is in a recession, ________ taxes decrease while ________ spending increases and, as a result of this automatic fiscal policy, aggregate demand ________
A) induced; discretionary; is not changed
B) needs-tested; induced; decreases
C) induced; needs-tested; increases
D) discretionary; induced; is not changed
E) discretionary; needs-tested; increases
C
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A firm’s optimal input proportions may change if
A. input prices change. B. the relative marginal productivities of the inputs change. C. the firm’s optimal output level changes. D. All of the responses are correct.
The U.S. Department of Commerce has been developing so-called "green accounting" to: a. include the value of leisure in the gross domestic product (GDP) of the country. b. register the impact of pollution and natural resource depletion
c. value the output of new firms. d. illustrate the difference between nominal GDP and real GDP. e. measure the value of the output produced by inexperienced workers.
All of the following are properties of typical indifference curves except
a. higher indifference curves are preferred to lower ones. b. indifference curves are downward sloping. c. indifference curves do not cross. d. indifference curves are bowed outward.
Suppose the following Lagrangian is formed to maximize a consumer's utility subject to her budget constraint: ? = U(X,Y) + ?(1,000 - 50X - 50Y). The first-order conditions for this problem imply:
A. (?U/?X)/(?U/?Y) = 10. B. PX/PY = 10. C. MRS = 10. D. All of the statements associated with this question are correct.