Because of automatic stabilizers, when real GDP increases...
What will be an ideal response?
government expenditures decrease and tax revenues increase
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What is "tax incidence"? What determines tax incidence in a competitive market?
What will be an ideal response?
The growth rate of which of the following is not a component of the growth accounting equation?
A) the capital stock B) labor C) depreciation D) available technology
A difference between economic regulation and social regulation is that
A) the former tends to affect the prices at which products are sold and the latter does not. B) the former tends to affect the profits of firms and the latter does not. C) the former tends to be specific to an industry and the latter tends to affect firms in all industries. D) the former tends to be done at the state level and the latter at the federal level.
In the short run, a price increase in the goods and services market measured by the CPI will: a. increase the purchasing power of money
b. improve producer profits and, thereby, induce suppliers to expand output. c. increase resource prices, lower profits, and lead to a decline in output. d. reduce the natural rate of unemployment.