If Congress authorized the President to lower tax rates or to initiate spending projects when aggregate demand was inadequate, which consequence could be predicted most confidently?
A) Aggregate spending would be more stable over time.
B) Recessions would be less severe.
C) Recessions would occur less frequently.
D) The political power of the President would increase.
E) We would experience a lower rate of inflation.
D
Economics
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According to the shortrun (specificfactors) model, how will FDI affect wages in the recipient nation?
a. They will rise. b. They will fall. c. They will not affect wages. d. They will fall in comparison to wages in the sending country.
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Is it true that in the long run it is impossible for firms functioning in a perfectly competitive market to earn positive economic profits? Explain your answer
What will be an ideal response?
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