Why is the Social Security system in crisis at a time when it's running large surpluses? What's the source of the problem? What solutions have been proposed?
What will be an ideal response?
The Social Security system is in a crisis even though it's running large surpluses because its surpluses will turn to large deficits within the next 20 years. The source of the problem is that the baby-boom generation will begin to retire, greatly increasing the Social Security benefits that will be paid out. Potential solutions include reducing benefits, increasing taxes, or getting a higher return for the Social Security trust fund by investing in the stock market.
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How would proponents of the efficient markets hypothesis use the Gordon-Growth model to explain the movement of stock prices during the Financial Crisis of 2007-2009?
What will be an ideal response?
The income elasticity for most foods is positive but less than 1
Indicate whether the statement is true or false
In a closed economy, which of the following components of GDP is not included?
A) investment B) government spending C) net exports D) consumption
The short-run aggregate supply curve illustrates the idea that if the price level falls, firms will experience:
A. Falling input costs, so they will increase their output level B. No change in input costs, so they will not change their output level C. Falling inputs costs, so they will reduce their output level D. No change in input costs, so they will reduce their output level