The critical issue for macro stability is whether spending injections will actually equal spending leakages at full employment.
Answer the following statement true (T) or false (F)
True
Otherwise there is too little or too much spending, which results in an inflationary or recessionary GDP gap.
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The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the firms' surplus equals ________
A) $800 B) $900 C) $1,800 D) $400 E) $200
Refer to the scenario above. What is the present value of Option C?
A) $2,763.64 B) $3,662.44 C) $4,516.80 D) $5,800.79
Congress passed the Freedom to Farm Act in 1996. What was the purpose of this Act?
A) to encourage more people to become farmers B) to phase out the use of price ceilings in agricultural markets C) to phase out price floors and return to a free market in agriculture D) to grant free land to farmers in order to produce crops that were particularly scarce
Borrowing from foreign banks by U.S. firms represents a capital inflow
a. True b. False Indicate whether the statement is true or false