If the economy is in an equilibrium with real GDP less than potential GDP, a fiscal stimulus could move the economy toward potential GDP by simultaneously ________ taxes and ________ government expenditures on goods and services
A) raising; increasing
B) raising; decreasing
C) cutting; increasing
D) cutting; decreasing
E) raising; not changing
C
Economics
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If the federal government implements programs to more quickly match the unemployed with jobs, then the natural rate of unemployment
A) will increase. B) will decrease. C) will not change. D) will disappear.
Economics
The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. The Nash equilibrium
A) is for just one of the firms to make the investment. B) is for both firms to make the investment. C) is for neither firm to make the investment. D) does not exist.
Economics