In 2012, the combined expenditures of federal, state, and local governments in the United States were approximately 38 percent of gross domestic product (GDP). Approximately what percentage of GDP were government expenditures in 1930?
a. 9 percent
b. 19 percent
c. 29 percent
d. 39 percent
A
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The demand for loanable funds curve shows the relationship between the quantity of loanable funds demanded and
A) the capital stock. B) the expected rate of profit. C) the real interest rate. D) depreciation. E) the price level.
The great failure of activist fiscal policy in the 1960s was its
A) timidity in the face of persistent stagnation. B) over-reliance on tax cuts to the exclusion of government spending programs. C) delay in reversing course as the economy became overstimulated. D) limited role as an accommodator of an activist monetary policy.
In the graph for the consumption function, the 45-degree line
A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.
Which of the following products should be sold face-to-face rather than by mass advertising?
a. Breakfast cereals b. Health drinks c. A pharmaceutical which can only be understood by doctors d. A new brand of herbal cosmetics