Suppose the federal government is considering alternatives to increase the level of real GDP in order to reduce unemployment. It can only do one of the following. Which will have the smallest impact on the federal budget?
A. Decreasing transfer payments
B. Increasing government spending
C. Increasing transfer payments
D. Decreasing government spending
Answer: B
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In a firm organized along functional lines, employee performance
a. Is easily evaluated because supervisor and employee have similar skills b. Is more difficult to evaluate because the supervisor and the employee could have different skills c. Does not need to be evaluated d. None of the above
Behavioral economists want to:
A. maintain supply and demand models. B. eliminate traditional economic building blocks. C. eliminate the supply and demand model. D. eliminate heuristic models.
In the given figure, the economy is initially in long-run equilibrium at point A. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point:
A. B. B. C. C. D. D. E.
Refer to the scenario above. The nominal GDP of the country in Year 1 was ________
A) $280,000 B) $2,200,000 C) $1,400,000 D) $540,000