Which of the following assumptions is true of government spending and taxes?
a. They do not depend upon on the level of GDP.
b. They may be changed only through direct action by the Congress.
c. They change only when the price level changes.
d. They change only upon executive order by the president of the United States.
e. They are autonomous at low levels of GDP but not at higher levels of GDP.
Question 2
If marginal product is at a maximum, then marginal cost is at a minimum.
a. True
b. False
Indicate whether the statement is true or false
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