Refer to the diagram, in which Q f is the full-employment output. If the economy's present aggregate demand curve is AD 2 :
A. the most appropriate fiscal policy is an increase of government expenditures or a reduction of taxes.
B. the most appropriate fiscal policy is a reduction of government expenditures or an increase
of taxes.
C. government should undertake neither an expansionary nor a contractionary fiscal policy.
D. the economy is achieving its maximum possible output.
C. government should undertake neither an expansionary nor a contractionary fiscal policy.
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Which of the following occurs with both perfectly price discriminating and single-price monopolies?
A) The amount of output is inefficient. B) All consumer surplus goes to the monopoly. C) Deadweight loss is created. D) There is a redistribution of consumer surplus to the monopoly.
The decision about whether a firm in each particular industry must operate as a proprietorship, partnership, or corporation is made by the Internal Revenue Service
Indicate whether the statement is true or false