A one-dollar tax reduction has the same effect as a one-dollar increase in government purchases

a. True
b. False
Indicate whether the statement is true or false

False

Economics

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Big Roads and Big Pavers are two competing road construction firms. The managers of these two firms should never undertake all of the following actions except which one?

A) agree to not submit a bid on a government road contract B) share information and experiences from implementing new government safety standards C) agree to only operate in a specific area of the country D) adjust the amount they bid on a government road contract

Economics

An adverse supply shock generally decreases the price level and real GDP.

a. true b. false

Economics