The cyclically adjusted deficit as a percentage of GDP is 2 percent in year 1. This deficit becomes 3 percent of GDP in year 2. It can be concluded from year 1 to year 2 that:
A. fiscal policy was contractionary.
B. the federal government is decreasing spending.
C. the federal government is increasing taxes.
D. fiscal policy was expansionary.
Answer: D
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When displaced workers require retraining before entering the labor force again, it is the result of ________ unemployment
A) structural B) cyclical C) seasonal D) frictional
The output effect of a change in the wage rate on a firm's demand for labor input will be greater
a. the larger the share of labor costs in total costs and the greater the price elasticity of demand for output. b. the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output. c. the larger the share of labor costs in total costs and the higher the quantity demanded. d. the smaller the possibilities of substituting capital for labor.
Which of the following statements is true of a barter system? a. In a barter system, it is difficult to keep track of the relative values of goods and services. b. In a barter system, an individual offers money to import goods and services
c. In a barter system, an individual offers currency notes to get coins. d. In a barter system, different kinds of money are exchanged for one another. e. In a barter system, individuals are self-sufficient.
If the economy grew at 7 percent from 2015 to 2016 and real GDP was 400 in 2015, what was real GDP in 2016?
A. 393 B. 400 C. 407 D. 428