The setting of the level of government spending and taxation by government policymakers is known as
A. fiscal policy.
B. monetary policy.
C. taxation policy.
D. None of the above is correct.
Answer: A
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Assume that the market demand for pens is given by QD = 650 - 25P and the market supply of pens is given by QS = 200 + 20P. If a firm sells 20 pens and faces an average total cost of $6, calculate the firm's profit
What will be an ideal response?
If the consumption function can be described as C = 200 + .80Y, the marginal propensity to save is equal to
A) -0.80. B) 0.80. C) 0.20. D) 200.
A fundamental principle in demand analysis is that a change in price leads to
A) a movement along the demand curve. B) a rightward shift of the demand curve. C) a leftward shift of the demand curve. D) a complementary movement on the supply curve.
When demand is elastic, an increase in price will result in an increase in total revenue.
Answer the following statement true (T) or false (F)