When the money supply increases by $5 billion, tax revenues are $10 billion, and government borrowing is $30 billion, government spending must equal:
a. $10 billion.
b. $15 billion.
c. $20 billion.
d. $35 billion.
e. $45 billion.
e
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The average total cost curves for Plant 1, ATC0, and Plant 2, ATC1, are shown in the figure above. The long-run average cost curve goes through points
A) C, D, G. B) A, C, E. C) A, B, D, G. D) A, B, D, E, F.
Between 1960 and 2010, the annual growth rate in percent per year was the highest in
A) China. B) United States. C) Brazil. D) Singapore. E) South Korea.
In practice, many U.S. import prices tend to rise by only around
A) 1/4 of a typical dollar depreciation over the following year. B) 1/3 of a typical dollar depreciation over the following year. C) 1/2 of a typical dollar depreciation over the following year. D) 2/3 of a typical dollar depreciation over the following year. E) 2/5 of a typical dollar depreciation over the following year.
In the midst of the Great Depression in 1932, Congress and the Hoover administration increased tax rates substantially. According to the Keynesian view, this tax increase was
a. inappropriate because it would depress economic activity and lead to further increases in unemployment. b. appropriate because it would lead to a significant increase in the money supply and, thereby, increase employment. c. inappropriate because it would decrease the money supply and, thereby, prolong the Depression. d. appropriate because it would stimulate economic activity and help end the Depression.