If the economy has been producing at a point where real GDP is less than potential GDP, what fiscal policy can the federal government use to restore real GDP to potential GDP?
A) decrease the quantity of money
B) raise the interest rate
C) increase taxes
D) cut government expenditure on goods and services
E) cut taxes
E
Economics
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A socially optimal price:
A) maximizes consumer surplus and minimizes producer surplus. B) maximizes producer surplus and minimizes consumer surplus. C) maximizes total surplus. D) maximizes deadweight loss.
Economics
The minimum wage is a good example of a price floor
Indicate whether the statement is true or false
Economics