At the beginning of a recession, the expenditure multiplier
A) offsets the initial cut in autonomous expenditure and slows the recession.
B) has no effect on the recession.
C) offsets the initial cut in autonomous expenditure and reverses the recession.
D) reinforces the initial cut in autonomous expenditure and reverses the recession.
E) reinforces the initial cut in autonomous expenditure and adds force to the recession.
E
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Suppose Country A is a major exporter of limestone in the world market. Which of the following policies can be taken by the government of Country A to enhance the gains from exporting limestone by raising its world price?
A. Taxing limestone exports B. Setting a price ceiling on the limestone sold in the domestic market C. Subsidizing export of limestone D. Subsidizing the extraction of limestone
The production possibilities frontier is the boundary between
A) those combinations of goods and services that can be produced and those that can be consumed. B) those resources that are limited and those that are unlimited. C) those combinations of goods and services that can be produced and those that cannot. D) those wants that are limited and those that are unlimited.