Fiscal policy affects the economy
a. only in the short run.
b. only in the long run.
c. in both the short and long run.
d. in neither the short nor the long run.
c
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In a certain economy, the components of aggregate spending are given by:C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, the immediate impact on aggregate expenditures of a one-percentage-point increase in the real interest rate (r) from 5 percent to 6 percent is ________, and the eventual impact on short-run equilibrium output is ________.
A. a decrease by 20 units, a decrease by 50 units. B. an increase by 800 units; a decrease by 2,000 units. C. an increase by 50 units; a decrease by 135 units. D. a decrease by 50 units, a decrease by 50 units.
In the above figure, if the price is P1 and the firm produced Q3, the firm's economic profit is ________ than if it produced Q1 and ________ than if it produced Q2
A) less; less B) less; more C) more; less D) more; more
The poverty rate in the United States has decreased by more than 50% over the last 40 years.
A. True B. False C. Uncertain
In a market based firm
A) headquarters is really only interested in external business relationships. B) headquarters still needs total budget control. C) headquarters assigns property rights. D) a focus on manufacturing is appropriate.