Suppose that because of climatic conditions, the smog levels in Los Angeles suddenly soar to dangerous levels. The most successful policy in this case would be
A. direct controls to limit driving.
B. taxes on drivers at rush hours.
C. voluntary cooperation to reduce driving.
D. removal of autos with excessive emissions.
Answer: C
Economics
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Which of the following would unambiguously generate inflation?
A) a decrease in aggregate demand accompanied by an increase in aggregate supply B) an increase in aggregate demand accompanied by a decrease in aggregate supply C) an increase in aggregate demand accompanied by an increase in aggregate supply D) a decrease in aggregate demand accompanied by a decrease in aggregate supply
Economics
Which of the following options could be used to eliminate a recessionary gap?
a. Decrease government spending b. Decrease consumption c. Decrease investment d. Decrease taxes
Economics