What is the output gap? How does it change when the economy goes into recession?
What will be an ideal response?
The output gap equals the difference between real GDP and potential GDP. When the economy goes into a recession, the output gap becomes negative.
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Ad valorem taxes are based on the number of units sold
a. True b. False
If the four-firm concentration ratio for an industry is 84 percent, then
A) each of the firms account for 21 percent of total sales. B) the four largest firms in the industry account for 16 percent of the total sales. C) the four largest firms in the industry account for 84 percent of the total sales. D) the remaining firms in the industry accounts for 84 percent of the total sales.
Interest is the payment for the use of funds used to produce capital
a. True b. False Indicate whether the statement is true or false
In June 2012, the public debt in the United States was approximately
A) $5.8 billion. B) $90 billion. C) $1.6 billion. D) $15.8 trillion. E) $120 trillion.