The increase in government spending on unemployment insurance payments to workers who lost their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion are examples of
A) discretionary fiscal policy.
B) discretionary monetary policy.
C) automatic stabilizers.
D) automatic monetary policy.
C
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Potential GDP is the level of
A) real GDP that the economy would produce if it was at full employment. B) nominal GDP that the economy would produce if it was at full employment. C) real GDP that the economy would produce if there was no inflation. D) nominal GDP that the economy would produce if there was no inflation. E) real GDP that the economy would produce if there was no unemployment.
In an economy without government or a foreign sector it is always true that
A) actual saving equals actual investment. B) actual saving equals desired investment. C) desired saving equals desired investment. D) desired saving equals actual investment.
Suppose Tucker Inc is willing to sell one gizmo for $10, a second gizmo for $15, a third for $20, and the market price is $25 . What is Tucker Inc's producer surplus?
a. $10 b. $15 c. $30 d. $50
When a firm produces 1 unit of output total cost is €350. When the firm produces 2 units of output, total cost is €450. The marginal cost of producing the second unit of output is:
(a) €100. (b) €150. (c) €250. (d) €350.