Expansionary fiscal policy during a recession means cutting taxes, increasing government spending, or taking both actions.
Answer the following statement true (T) or false (F)
True
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Economic growth is determined by forces outside the control of the market system.
Answer the following statement(s) true (T) or false (F)
The SAS curve shifts if there is a change in
A) the price level. B) real GDP. C) nominal GDP. D) potential GDP.
The information content of a product can never be separated from the physical aspect of the product
Indicate whether the statement is true or false
Economic growth can be especially fast in countries that are playing catch-up to other countries with higher GDP per capita. As a result many economists have suggested a general principle known as the convergence hypothesis. It says that differences in real GDP per capita among countries tend to narrow over time because countries that start with lower real GDP per capita tend to have higher growth rates. Assume that this hypothesis is true. Illustrate the convergence hypothesis by using the line tool to draw an appropriate straight line, label it as the catch-up line. On this line use the point tool to plot points to represent two countries: one with a higher growth rate (label it B) and one with a lower growth rate (label it A).
What will be an ideal response?