Automatic stabilizers will reduce tax revenues during recessions and increase tax revenues during periods of strong economic growth.
Answer the following statement true (T) or false (F)
True
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Suppose a country has a national debt of $5,000 billion, a GDP of $20,000 billion, and a budget surplus of $130 billion. How much will its new national debt be?
A) $5,130 billion B) $4, 870 billion C) $15,130 billion D) $19, 870 billion
An increase in both the equilibrium price and the equilibrium quantity of DVD players is best explained by a(n):
A. increase in the demand for DVD players. B. decrease in the supply of DVD player. C. decrease in the demand for DVD players. D. increase in the supply of DVD players.
The responsiveness of demand to changes in income holding the good's relative price constant is
A) price elasticity of demand. B) income elasticity of demand. C) elasticity of supply. D) cross price elasticity of demand.
Maximum Feasible Hourly Production Rates of EitherProduct A or Product B Using All Available ResourcesProductCountry XCountry YA48B44 Refer to the above table. If opportunity costs are constant and both countries produce only the goods for which they have comparative advantages and then trade, hourly world output would equal
A. 12 units of product A and 8 units of product B. B. 8 units of product A and 8 units of product B. C. 4 units of product A and 4 units of product B. D. 8 units of product A and 4 units of product B.