If the government were to decrease corporate income tax, we would predict a:
A. downward movement along the aggregate demand curve.
B. shift in aggregate demand to the right.
C. shift in aggregate demand to the left.
D. shift straight down of aggregate demand.
B. shift in aggregate demand to the right.
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 100 billion kilowatt hours are produced is
A) 5¢ per kilowatt. B) 10¢ per kilowatt. C) 15¢ per kilowatt. D) 20¢ per kilowatt. E) 0¢ per kilowatt.
Gross Domestic Product is equal to the sum of consumption expenditure, investment, net exports, and ________
A) government expenditures on goods and services B) saving C) profits D) net taxes
Depository institutions are good at minimizing
A) the costs of monitoring borrowers. B) risky borrowers. C) liquidity. D) all of the above.
In the Solow model, the faster growth of output that results from an increase in the saving rate is temporary, because ________
A) of diminishing marginal product of capital B) with a larger stock of capital, consumption is encouraged more than investment C) the rising capital stock depreciates at a faster rate D) the economy settles into a steady state in which saving no longer rises