If fiscal stimulus creates a large budget ________, then in the long run economic growth ________
A) deficit; decreases
B) surplus; increases
C) deficit; increases
D) surplus; decreases
E) None of the above answers is correct.
The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP.
A
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Suppose Ford can triple its production of 150s by tripling its production facility for those trucks. This indicates the presence of:
a) the law of diminishing returns. b) minimum efficient scale. c) constant returns to scale. d) diseconomies of scale. e) economies of scale.
Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon
If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month. A) 100 B) 80 C) 120 D) 200