One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it is an artifact of mismeasurement. This explanation would require that production of
A) goods is underestimated.
B) goods is overestimated.
C) services is underestimated.
D) services is overestimated.
C
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
If a U.S. firm produces cars in Mexico, that production should count towards
A) Mexico's GNP. B) U.S. GDP. C) U.S. GNP. D) It will not affect either U.S. GNP or U.S. GDP.
A producer can raise profit by expanding output if his:
a. marginal revenue is equal to marginal cost. b. marginal revenue is less than marginal cost. c. marginal revenue is negative. d. marginal cost is negative. e. marginal revenue is greater than marginal cost.
If the tax on gasoline increases from $2 to $4 per gallon, the deadweight loss from the tax increases by a factor of
a. one-half. b. two. c. four. d. six.