Equilibrium GDP in excess of potential GDP eventually will cause the aggregate
a. demand curve to shift outward.
b. supply curve to shift outward.
c. supply curve to shift inward.
d. demand curve to become flatter.
c
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In a country with unusually high tax rates, one might expect that ________
A) GDP might be overstated because the government might avoid running surpluses B) GDP might be understated because its citizens might avoid reporting some of their income C) GDP might be overstated because the government might raise its outlays D) GDP might be understated because its citizens might flee the country E) after tax income should be much higher than that of countries with lower tax rates
Which of the following factors has the most quantitative importance on the oversimplified multiplier formula?
a. it ignores variable imports b. it ignores price-level changes c. it ignores income taxes d. All of these equally affect the oversimplified multiplier formula
Increases in the supply of scientists and engineers can increase the level of
A. investment. B. consumption. C. government spending. D. technology.
Euler's theorem implies that if a production function exhibits constant returns to scale, then:
A. economic profit is zero. B. accounting profit is zero. C. the marginal product of labour equals the real wage. D. the marginal product of capital equals the real interest rate.