If the government uses fiscal policy to close a recessionary gap,
A) taxes must be cut by more than the gap because of the tax multiplier.
B) government expenditure must be increased by more than the gap because of the government expenditure multiplier.
C) taxes must be raised by more than the gap because of the tax multiplier.
D) government expenditure can be increased by less than the gap because of the government expenditure multiplier.
E) taxes can be raised by less than the gap because of the tax multiplier.
D
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A example of a topic studied in the field of new growth is how incentives for ________ interact with the accumulation of physical capital
A) international trade B) new product development C) research and development D) all of the above
One of the more unique aspects of NAFTA compared with other preferential trade arrangements is the fact that the NAFTA countries have
A) similar cultures. B) fixed exchange rates. C) common borders. D) very different standards of living.
Consumer confidence is measured by two indices: the Consumer Sentiment Index and the Consumer Confidence Index
Indicate whether the statement is true or false
New Texas stadium was built with so that the team could sell "standing room only" tickets. People who buy these tickets can watch the game on televisions located around the facility or on catwalks that surround the stadium. Policing those fans (making sure they do not stand in the way of people who have seats) is costly. In that case, the MC curve would be
A. upward sloping. B. a backward L. C. downward sloping. D. a forward L.