If fiscal stimulus creates a large budget ________, then in the long run economic growth ________
A) deficit; decreases
B) surplus; increases
C) deficit; increases
D) surplus; decreases
E) None of the above answers is correct.
The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP.
A
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Define the marginal propensity to consume (MPC) and the marginal propensity to save (MPS), and explain why MPC + MPS always equals 1
What will be an ideal response?
Even limited deregulation can spur business growth and reduce poverty
Indicate whether the statement is true or false
A price ceiling set below an equilibrium price tends to cause persistent imbalances in the market because
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
Beyond some minimum level of effort, it is usually expected that teamwork will have the impact of ________ relative to individual effort.
A. leaving output the same B. reducing output C. increasing output D. reducing and then increasing the output