Figure 11-1
In Figure 11-1, to achieve equilibrium at potential GDP the government could
a.
increase taxes.
b.
decrease transfer payments.
c.
increase government purchases.
d.
None of the above is correct.
c
You might also like to view...
Assume that average labor productivity is the same in each country. Based on the information in the table, which country has the highest real GDP per capita?CountryPopulation (millions)Share of Population Employed (%)A10060B15055C7550D25045E9540
A. Country A B. Country B C. Country C D. Country D
Refer to Figure 7-2. As a result of the tariff, domestic producers increase their quantity supplied by
A) 6 million pounds of coffee. B) 18 million pounds of coffee. C) 26 million pounds or coffee. D) 38 million pounds of coffee.
The external costs of alcohol consumption are related to, among other things, death and injury related to auto accidents caused by drunk drivers. These costs have been estimated to be about 47 cents per ounce of alcohol consumed. Taxes on alcohol amount to 23 cents per ounce. This suggests that alcohol consumption is (i) greater than the efficient or optimal amount; (ii) should be reduced to zero
to eliminate the externality. a. i and ii b. i not ii c. ii not i d. neither i nor ii
Some of a firm's workers are made worse off by the introduction of a union
a. True b. False Indicate whether the statement is true or false