The imposition of price ceilings on a market often results in
a. an increase in investment in the industry.
b. a persistent surplus in the market.
c. the diversion of income toward black-market suppliers.
d. lower prices being offered on the black market.
c
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Here is what we know about a household: wages $25,000, unemployment insurance benefits $3,000, dividend income $4,000, income tax $5,000. What is the contribution to GDP of this household following the expenditure approach?
A) $24,000 B) $25,000 C) $28,000 D) $29,000
The phrase "capital formation" is synonymous with
a. investment spending. b. buying shares of stock. c. creating mutual funds. d. purchasing financial assets.
If your income is $40,000 and your income tax liability is $5,000 . your marginal tax rate is
a. 8 percent. b. 12.5 percent. c. 20 percent. d. unknown. We do not have enough information to answer this question.
In the model of aggregate demand and aggregate supply, the GDP deflator measures the
a) price of oil. b) average price level. c) nominal interest rate. d) amount of real output.