During a recession, higher welfare outlays:
a. increase the size of the budget deficit even if the government does not undertake discretionary fiscal policy.
b. decrease the size of the budget deficit regardless of the government's discretionary fiscal policy
c. increase the size of the budget deficit only if the government undertakes discretionary fiscal policy.
d. decrease the size of the budget deficit only if the government undertakes discretionary fiscal policy.
e. have the same effect on the budget deficit as they do in times of expansion.
a
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If a firm in perfect competition charges the market price of $14, then its
a. MR = $14 and its AR < $14 b. MR = $14 and its AR > $14 c. AR = $14 and its ATC = $14 d. AR = MR = $14 e. ATC = MC = $14
One argument offered by economists for having a Social Security system is that if there were no Social Security, workers might
A. save too much. B. work too long. C. overestimate the value of retirement. D. decide to use welfare as a retirement income, pushing the costs off onto others.