If the MPS is .25 and the economy has a recessionary expenditure gap of $5 billion, then equilibrium GDP is:
A. $5 billion below the full-employment GDP.
B. $5 billion above the full-employment GDP.
C. $20 billion below the full-employment GDP.
D. $20 billion above the full-employment GDP.
C. $20 billion below the full-employment GDP.
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Any attempt to capture a consumer surplus, a producer surplus, or an economic profit is called
A) profit-maximizing. B) rent-seeking. C) price discriminating. D) efficiency gain.
Debbie Black played professional basketball for 8 years in Australia before returning home to America in 1996 to join the newly formed American Basketball League as a player for the Colorado Xplosion. Her 1995 earnings as a player in Australia were counted as part of
a. America's GDP and Australia's GDP b. America's GNP and Australia's GDP c. America's GDP and Australia's GNP d. America's GNP and Australia's GNP e. America's GNP but were not counted in Australia
The total burden of a tax equals tax receipts plus excess burden
a. True b. False Indicate whether the statement is true or false
Other things constant, an increase in resource prices will do which of the following?
What will be an ideal response?