In the short run, a fiscal policy action that results in a reduction in the size of the budget deficit will cause
A) a reduction in real GDP with falling prices if the economy was below or at full employment.
B) an inflationary gap if the economy was initially operating below full employment.
C) an inflationary gap if the economy was initially operating at full employment.
D) an increase in real GDP with stable prices if the economy was below full employment.
A
Economics
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By producing less, a firm can reduce
A) its fixed costs and its variable costs. B) its fixed costs but not its variable costs. C) its variable costs but not its fixed costs. D) neither its variable costs nor its fixed costs.
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Which of the following is NOT considered a determinant of income differences?
A) productivity B) age C) discrimination D) equity or fairness
Economics