In reality, the Fed's information is fairly imprecise in regards to:
A. unemployment
B. actual real GDP
C. potential GDP
D. inflation rates
Answer: C
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An income tax system where higher tax rates are applied to increased amounts of income is called a:
A) regressive tax system. B) proportional tax system. C) progressive tax system. D) flat tax system.
Concerns over unpleasant or unsafe standards of foreign labor do not affect most of U.S. trade because most U.S. trade is intra-industry and carried out with
a. high-income countries that have labor standards similar to the United States. b. low-income countries that have labor standards similar to the United States. c. high-income countries that have lower labor standards than the United States. d. low-income countries that have lower labor standards than the United States.
If MC > MR,
a. output should be reduced. b. marginal profit is positive. c. there are losses. d. output should be increased.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower