Because of automatic stabilizers, when real GDP decreases...
What will be an ideal response?
government expenditures increase and tax revenues decrease
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Consumers who clip and redeem discount coupons ________.
A. exhibit the same price elasticity of demand for a given product than consumers who do not clip and redeem coupons B. exhibit a relatively higher price elasticity of demand for a given product than consumers who do not clip and redeem coupons C. cause total revenue to decrease for firms that issue coupons for their products D. exhibit a relatively lower price elasticity of demand for a given product than consumers who do not clip and redeem coupons
A perfectly free market system may not be efficient in terms of minimizing pollution, unsafe working conditions, unfair hiring practices, and a grossly uneven distribution of wealth.
Indicate whether the statement is true or false.
Gross Domestic Product would be a more accurate indicator of economic well-being of society if
A. military expenditures were included in GDP. B. military expenditures were excluded from GDP. C. the government did not purchase goods and services. D. stock market transactions were excluded from GDP.
The purchase by the central bank of newly created government debt is called "monetizing the deficit."
Indicate whether the statement is true or false