GDP is a flow variable because it measures the process of production and is independent of time
a. True
b. False
B
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A federal budget ________ occurs when the federal government spends more than it collects in taxes
A) ceiling B) deficit C) surplus D) equilibrium
The ________ describes the relationship between the amount of labor employed and real GDP
A) production function B) production possibilities frontier C) Lucas Wedge D) inflation rate E) Okun Gap
For consumers, taco chips and salsa are complements. If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?
A) The equilibrium price of taco chips falls, and the equilibrium quantity decreases. B) The equilibrium price of taco chips rises, and the equilibrium quantity decreases. C) There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases. D) The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases. E) The equilibrium price of taco chips rises, and the equilibrium quantity increases.
Which of the following would lead domestic investment to rise?
A) an increase in government spending throughout the world B) an increase in world taxes C) an increase in world autonomous consumption D) all of the above E) none of the above