The identity stating that the total amount spent on final output equals the amount received for final output is known as the
A) equation of exchange.
B) circular flow identity.
C) identity equation.
D) fundamental law of economics.
A
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In a certain economy, the components of aggregate spending are given by:C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what would be the impact on short-run equilibrium output of a one-percentage-point increase in the real interest rate from 4 percent to 5 percent?
A. Short-run equilibrium output would decrease by 2,000 units. B. Short-run equilibrium output would decrease by 20 units. C. Short-run equilibrium output would increase by 55 units. D. Short-run equilibrium output would decrease by 50 units.
The federal income tax in the United States is
A) regressive. B) proportional. C) progressive. D) a flat-rate tax.
In the figure above, with no government involvement and if the colleges are competitive, what is the deadweight loss?
A) $12 billion per year B) $6 billion per year C) $4 billion per year D) zero
Production of Hollywood movies is an increasing cost industry. Which of the following contributes the most to this condition?
a. The demand for carpenters to build sets b. The demand for painters to paint the theaters c. The demand for printers to print tickets d. The cost of advertising for the shows e. The cost of hiring known box-office superstars