Regarding structural deficits, which of the following assertions is true?
a. The structural deficit depends on the state of the economy
b. The structural deficit is basded on actual expenditures and receipts.
c. The structural deficit change only when policy changes.
d. The structural deficit changes when GDP changes.
c
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If it took 20 years for real GDP to double, what was the growth rate of real GDP?
A) 4.5 percent B) 3.0 percent C) 3.5 percent D) 4 percent E) 5 percent
All of the following are assumptions of monopolistic competition EXCEPT
A) many buyers and sellers. B) homogeneous product. C) easy entry of new firms in the long run. D) profit-maximizing behavior.
Keynesians and non-Keynesians would largely agree on which one of the following statements?
a. Expansionary fiscal policy will tend to substantially increase current real output. b. Proper timing of discretionary fiscal policy is difficult to achieve. c. The use of discretionary fiscal policy is an important stabilization tool. d. Market forces will automatically direct the economy toward full employment.
If we are going to get the most value from our resources, entrepreneurs should choose the investment alternatives that
A) are most heavily subsidized by the government. B) yield a profitable rate of return. C) result in the production of the largest possible output regardless of value to consumers. D) reduce the value of resources and retard wealth accumulation.