Answer:
Companies increased production.
Company profits increased
Answer:
The result would likely be a contraction of the economy. The GDP would probably fall or grow less.
A goverment applies contractionary fiscal policy when it reduces spending. Less government spending can reduce economic activity because spending can be a form of investment. For example, when the government spend less on building schools, roads and infraestructure, the people who build those lose their jobs, receive less income, consume less, and the economy contracts.
Contractionary monetary policy is applied by the central bank (the Federal Reserve in the United States). It would consist in reducing the amount of money available (the money supply). Less money in the economy results in higher interest rates. This creates a cycle in which banks give less loans, and investment falls. Less investment contracts the economy.
Answer:
B. People face trade-offs.
Explanation:
According to a different source, these are the options that come with this question:
A. Larry can use time most efficiently by spending the same amounts of time on swimming, biking, and running.
B. People face trade-offs.
C. People usually exploit opportunities to make themselves better off.
D. Larry has an incentive to spend more time on swimming than on biking or running.
The basic principle that these choices illustrate is that people face trade-offs when trying to decide what the right course of action is at any particular moment. In this example, Larry has three tasks that he needs to complete: swimming, biking and running. However, dedicating time to one of this leads to less time for the other ones. Therefore, Larry faces a trade-off. This concept is closely related to the idea of opportunity costs.
