A fiscal policy action to close a recessionary gap is to:
A. decrease the marginal propensity to consume.
B. increase transfer payments.
C. decrease government purchases.
D. increase taxes.
Answer: B
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One way to achieve faster growth in GDP per person is to increase the
A) number of women working in the home rather than in the workforce. B) growth rate of the quantity of money. C) growth rate of human capital. D) growth rate of the population. E) limits on international trade in order to keep more of total spending on domestically produced goods.
The costs of many environmental regulations can be calculated in dollars but the benefits often are in terms of lives saved (mortality) or decreases in the incidence of a particular disease (morbidity)
What does this imply about the cost-benefit analysis of environmental regulations? There is an old saying "You can't put a price on a human life." Do you agree or disagree? Explain.