President Barrack Obama and Congress cut taxes and raised government expenditures during the 2008 financial crisis. According to the aggregate supply and aggregate demand, model which of these policies would tend to reduce unemployment?
a. both the tax cut and the increase in government expenditures
b. the tax cut but not the increase in government expenditures
c. the increase in government expenditures but not the tax cut
d. neither the increase in government expenditures nor the tax cut
a
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A demand curve that is unit elastic everywhere is
a. linear and slopes downward b. linear and slopes upward c. vertical d. horizontal e. nonlinear
An information is beneficial to the decision-maker only when:
a. its marginal cost is zero. b. its marginal benefits exceeds its marginal cost. c. the possibility of inaccurate transmission is nullified. d. its marginal benefit is positive.
The factors of production include all goods and services produced in an economy
a. True b. False Indicate whether the statement is true or false
Politicians will often be able to gain from support of trade restrictions because
A) foreigners benefiting from the restrictions will be a major source of political contributions. B) organized interest groups benefiting from the restrictions will make large contributions to political campaigns while most others will not feel strongly about the restrictions. C) the restrictions will lead to lower prices and substantial benefits for consumer groups. D) the restrictions will generate substantial benefits for consumer groups at the expense of well-organized labor and industrial interests.