Which of the following would be classified as private investment spending?
a. A family's purchase of a new home
b. An automobile producer's purchase of steel for use in building new cars
c. A paper company's purchase of timber
d. A household's purchase of AT&T stock
e. The government's purchase of a new office building
A
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Steve has two goods he can spend his income on, skiing and skating, and his marginal utilities from each are in the table above. The price of each unit of skiing is $10 and the price of each unit of skating is $5. Steve has $40 to spend
What quantities of skiing and skating should Steve consume to maximize his utility? A) 4 units of skiing and 4 units of skating B) 2 units of skiing and 4 units of skating C) 1 unit of skiing and 2 units of skating D) 5 units of skiing and 5 units of skating
What does it mean if an industry has external diseconomies?
What will be an ideal response?
If a central bank is independent,
a. it has the ability to alter taxes. b. it allocates savings to firms. c. it restricts trade to increase domestic employment. d. it operations are not controlled by the political process.