To help close an inflationary gap, the government could:
A. run budget deficits.
B. decrease taxes.
C. increase government spending.
D. run budget surpluses.
Answer: D
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In the long run, a perfectly competitive firm maximizes profit so P = MC = AC.
Answer the following statement true (T) or false (F)
Using the data in the above table, in the short-run macroeconomic equilibrium, the price level is ________ and the level of real GDP is ________
A) 105; $10 trillion B) 110; $10 trillion C) 110; $11 trillion D) 115; $10 trillion
The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. What is the amount of the tax?
A) $1 per gallon B) $2 per gallon C) $3 per gallon D) $4 per gallon
A decrease in a fixed exchange rate from $1.75 per pound to $1.60 per pound is called a(n) ________ of the pound
A) devaluation B) depreciation C) revaluation D) appreciation