Answer the following statements true (T) or false (F)
1) Expansionary fiscal policy is so named because it involves an expansion of the nation's money
supply.
2) If the MPC in the economy is .75, government could shift the aggregate demand curve
rightward by $30 billion by cutting taxes by $10 billion.
3) If the MPC in the economy is .75, government could shift the aggregate demand curve
rightward by $30 billion by cutting taxes by $10 billion.
4) Demand-pull inflation can be restrained by increasing government spending and reducing
taxes.
1) F
2) T
3) T
4) F
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The figure illustrates the market for haircuts. Curve A is the ________ curve, and curve B is the ________ curve
A) marginal social cost; marginal social benefit B) total social cost; total social benefit C) opportunity cost; opportunity benefit D) marginal social benefit; marginal social cost
The number of brands of identical products will most likely increase as
A) the number of informed consumers increases. B) the cost of producing many brands decreases. C) the number of uninformed consumers decreases. D) None of the above.