Answer the next question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$450$425$2,000Year 25004503,000Year 36005004,000Year 46406205,000Year 56805804,800Year 66006205,000If year 1 is the first year of this nation's existence and year 4 is the present year, the public debt as a percentage of GDP in year 4 is

Despite evidence that companies will find it more profitable to use a commission system of compensation rather than a salary system, many companies continue to pay their workers salaries

Which of the following is one reason why firms choose a salary system? A) Firms that have salary systems do not have to use compensating differentials to attract employees to do hazardous jobs. B) Many workers dislike risk and prefer to be paid a salary rather than to be paid by commission. C) Firms often use salary systems to overcome their principal-agent problems. D) Most business owners and managers are not trained economists; therefore, they are unaware of the research that shows a commission system is more profitable than a salary system.

In the short run, a decrease in the price level: a. decreases output prices relative to input prices. b. increases the profit margins of many producers. c. decreases RGDP supplied

d. both (a) and (c)