Which of these is a supply-side approach to increase growth?
a. Spending on the construction and repair of state highways
b. Providing tax benefits to start-up companies
c. Investing in the production of arms and ammunitions
d. Replacing old aircrafts with new fighter planes
e. Increasing transfer payments to retirees
b
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National Income is obtained by
a. subtracting capital consumption allowance from GDP. b. adding all the earnings of productive resources in a given period. c. subtracting personal taxes from personal income. d. adding personal savings and personal consumption expenditures.
Which of the following statements best explains the effects of transfer payments and taxes on aggregate spending? a. Transfer payments and taxes affect aggregate spending directly, just as consumption does
b. Transfer payments and taxes affect aggregate spending indirectly by first changing disposable income and thereby changing consumption. c. Changes in the amount of transfer payments and taxes cancel each other and therefore have no influence on any economic variable. d. Transfer payments and taxes affect disposable income but have no effect on consumption. e. Transfer payments affect disposable income, but taxes do not.
The real problem for people in many _______________ countries is not that globalization through international trade has made their lives worse, but rather that they have so few good employment alternatives.
a. low-income b. high-income c. large d. small
Which of the following does NOT occur when a country with floating exchange rates increases the money supply?
A. The current account initially tends to worsen. B. The interest rates changes, causing real spending, production, and income to fall. C. The interest rate changes, causing capital outflows in the short run. D. Aggregate demand increases, which leads to an increase in the price level.