All of the following are likely to be effective at eliminating a recessionary gap except one. Which is the exception?
a. Reducing Social Security payments to beneficiaries
b. Reducing personal income taxes
c. Increasing government expenditures on the interstate highway network
d. Increasing farm subsidies
e. Reducing corporate income taxes
a
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The difference between the total amount that producers would have been willing to accept for the total quantity produced in a market and what they actually received at the market clearing price is called
A) production excess. B) excess demand. C) market surplus. D) producer surplus.
What is likely to happen to the demand for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?
A. The demand for firemen will increase as the supply of firemen falls when old buildings are replaced with newer buildings. B. The demand for firemen will remain unchanged as firemen do not build new construction. C. The demand for firemen will remain unchanged as long as the property tax-base increases when the new construction projects are completed. D. The demand for firemen will increase as long as wages paid to workers on new construction projects exceed the minimum wage. E. The demand for firemen will fall as the demand for fire protection services falls.