In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because:
A. changes in trade deficits and surpluses.
B. the length of the workweek has declined historically.
C. the price level may change over time.
D. depreciation may be greater or smaller than gross investment.
C. the price level may change over time.
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Suppose a start-up company can operate from a traditional office space or from a virtual office in which there is no physical office location and the employees collaborate over internet connections from their individual homes
Shirking is more difficult to monitor under the virtual office plan. How would the efficiency wage and level of employment for the virtual office compare to the traditional office plan? A) Efficiency wage and employment are higher B) Efficiency wage is lower, employment is higher C) Efficiency wage is higher, employment is lower D) Efficiency wage and employment are lower
Considering the United States to be a capital-abundant country, which of the following facts would contradict the predictions of the Heckscher-Ohlin theory?
A. The United States is a net importer of labor-intensive products. B. The United States is a net importer of capital-intensive products. C. The United States is a net importer of certain natural resources such as petroleum. D. The United States is a net importer of products that use farmland intensively.
Which of the following forms of taxation accounts for the largest share of taxes received by state and local governments?
A) sales, excise, and gross receipts taxes B) personal and corporate income taxes C) license and permit fees D) property taxes