The relationship between real GDP and potential GDP is that
A) real GDP always equals potential GDP.
B) real GDP never equals potential GDP.
C) real GDP fluctuates about potential GDP.
D) real GDP is always below potential GDP.
C
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An improvement in consumer confidence will cause:
A. A movement down the aggregate demand curve. B. The aggregate supply curve to shift to the right. C. The aggregate demand curve to shift to the right. D. The aggregate demand curve to shift to the left.
The human and capital resources used by businesses to satisfy regulatory requirements are known as compliance costs.
Answer the following statement true (T) or false (F)
Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. To move the economy back to potential GDP, Congress should
A) raise taxes by $200 billion. B) lower government purchases by an amount less than $200 billion. C) lower government purchases by $200 billion. D) raise taxes by an amount more than $200 billion. E) lower taxes by $200 billion.
In order to determine personal income, what adjustments have to be made to national income?
A) subtract undistributed corporate profits, corporate income tax, social security taxes, and then add government transfers and private interest payments B) subtract undistributed corporate profits, social security taxes, government transfers, and then add private interest payments C) subtract undistributed corporate profits, corporate consumption allowance, corporate income tax, social security tax and then add government transfers and private interest payments D) subtract corporate income tax and social security taxes and then add corporate dividends, government transfers, and private interest payments