In national income accounting, the value of worn out or obsolete capital is represented by
A) depreciation.
B) transfer payments.
C) disposable income.
D) dividends.
A
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A fiscal policy action to close a recessionary gap is to:
A. increase taxes. B. decrease the marginal propensity to consume. C. decrease government purchases. D. increase transfer payments.
The government wishes to reduce he price level by reducing real GDP by $400 billion. Assuming a tax multiplier of 4 and a government spending multiplier of 5, which of the following policy prescriptions would reduce the aggregate demand curve by $400 billion?
A. Decreasing government spending by $400 billion and increasing taxes by $100 billion. B. Decreasing government spending by $160 billion and decreasing taxes by $100 billion. C. Decreasing government spending by $40 billion and decreasing taxes by $40 billion. D. Decreasing government spending by $100 billion and keeping taxes the same.
Economic growth generally leads to
A. intensified disinflation. B. higher rates of deflation. C. higher rates of inflation. D. higher living standards.
What is the difference between the short run and the long run?
Please provide the best answer for the statement.