Borrowing to pay for long-lived capital expenditures makes sense as
A) the benefits are received in the current year so the burden of paying for them should be spread over many years.
B) the benefits are received in the current year so the burden of paying for them should be paid in the current year.
C) the benefits are received over many years so the burden of paying for them should be spread over many years.
D) the benefits are received over many years so the burden of paying for them should be paid in the current year.
C
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The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate
A) fluctuates about the natural rate. B) equals the natural rate. C) is always below the natural rate. D) is always above the natural rate.
Using the data in the above table, in the short-run macroeconomic equilibrium, there is
A) an inflationary gap of $1 trillion. B) an inflationary gap of $2 trillion. C) a recessionary gap of $1 trillion. D) a recessionary gap of $2 trillion.
Nominal GDP is GDP in a given year
A) valued in the prices of that year. B) valued in the prices of the base year. C) adjusted for inflation. D) adjusted for anticipated inflation.
Which of the following would not be classified as an economic resource by economists?
A. A professional soccer player. B. Water in a town's reservoir. C. Money in a business checking account. D. The manager of the local hamburger restaurant.