In the United States, presidential elections occur every four years. If a political business cycle exists in the United States, in which year of a presidential term, all else fixed, would we expect output growth to be highest?
A) the first year
B) the second year
C) the third year
D) the fourth year
D
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"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant
Indicate whether the statement is true or false
The deadweight loss of taxation:
A. is the lost consumer surplus due to a gain in producer surplus from a tax. B. is the lost producer surplus due to a gain in consumer surplus from a tax. C. is the lost aggregate surplus due to a tax. D. is the difference between consumer and producer surplus after a tax.
Ceteris paribus, if income was transferred from individuals with a low MPC to those with a high MPC, aggregate demand would
A. Stay the same. B. Decrease. C. Increase. D. Increase or decrease, but not because of the MPC.
A nonmonetary opportunity cost is called a(n) ________, while a cost that involves spending money is called a(n) ________
A) accounting cost; explicit cost B) implicit cost; explicit cost C) accounting profit; economic profit D) normal rate of return; asset