Which of the following is a practical question to implementing Keynesian economic policies to stimulate the economy?
a. Does the government know whether it is better to increase spending or increase taxes?
b. Does the government know whether it is better to cut spending or cut taxes?
c. Does the government know when there is cyclical unemployment?
d. Does the government accurately know what the country’s potential GDP is?
d. Does the government accurately know what the country’s potential GDP is?
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GDP accounts systematically ignore
A) non-market production. B) illegal and underground production. C) barter trades. D) the market value of services provided by illegal aliens. E) all of the above.
A roller coaster operator produces thrill-packed rides using electricity and a roller coaster. For the roller coaster operator, electricity is
A. an opportunity cost. B. a variable cost. C. a fixed cost. D. a sunk cost.
Assume Jack received all As in his classes last semester. If Jack gets all Bs in his classes this semester, his GPA may or may not fall
a. True b. False Indicate whether the statement is true or false
The Callaway family owns a small bait and tackle shop in a resort town in Wisconsin. An economic recession reduces the number of tourists for one summer, which reduces the family's income for that year. For the Callaway family, their
a. transitory income for the year of the recession likely exceeds their permanent income. b. permanent income likely exceeds their transitory income for the year of the recession. c. permanent income will be more affected by the recession than their transitory income. d. Both a and c are correct.