Crowding out refers to a decline in ________ as a result of an increase in ________
A) tax revenues; unemployment
B) government purchases; tax rates
C) government purchases; private expenditures
D) private expenditures; government purchases
Answer: D
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In the long run in a perfectly competitive market:
A. firms earn positive economic profits. B. supply is perfectly inelastic when all firms have the same cost structure. C. firms operate at an efficient scale. D. All of these are true.
The transmission mechanism alters the real gross domestic product through changes in the price level
a. True b. False Indicate whether the statement is true or false
The Gini Coefficient in the United States has changed from 0.377 in 1986 to 0.45 in 2017, which means income inequality has ______.
a. grown b. shrunk c. disappeared d. held steady
The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n):
A. market advantage. B. comparative advantage. C. absolute advantage. D. specialization advantage.