Because of labor hoarding, an increase in output may signal
A) an increase in employment.
B) a reduction in employment.
C) no change in employment.
D) a reduction in productivity.
C
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When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good ________ and domestic production of the good ________
A) do not change; increases B) increase; increases C) decrease; increases D) decrease; decreases E) increase; decreases
During an economic expansion,
A) higher income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit. C) lower income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. D) lower income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.