Which statement is true?
A. Aid to other countries is the fourth largest spending item in the federal budget.
B. Nearly half of federal government spending goes for direct payments to individuals.
C. Over half of all federal tax receipts comes from the personal income tax.
D. Defense spending per capita is less than most other industrial countries.
B. Nearly half of federal government spending goes for direct payments to individuals.
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
During a recession, cyclical unemployment ________ and real GDP ________
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases E) does not change; decreases
The above figure shows the demand curve for movie rentals from Redbox. Which of the following is TRUE?
A) Consumer expenditure on movie rentals will always increase whenever Redbox lowers its price. B) Redbox will receive more total revenue if it charges $4.00 per movie rental rather than $3.00. C) The price elasticity of demand for movie rentals falls as Redbox raises its price. D) The demand for movie rentals is more price inelastic at $1.00 than it is at $1.50.
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, producer surplus will be
A) d. B) d + e. C) d + g. D) d + c + g.