An increased federal budget deficit resulting from a recession can actually help stabilize an economy, because corporate profits tend to fall in a recession which, in turn, results in ________ corporate taxes and ________

Refer to Figure 4-10. With rent control, the quantity supplied is Q1. Suppose apartment owners ignore the law and rent this quantity for the highest rent they can get. What is the highest rent they can get?

A) more than R1 B) R* C) R1 D) R0

The classical theory predicts that

A) countries will completely specialize in the production of export goods. B) considerable trade will occur between countries with different levels of technology. C) small countries could obtain all of the gains from trade when trading with large countries. D) All of the above.