Which of the following is likely to be included in a country's Gross Domestic Product in a particular year?
A) An unsold inventory of automobiles produced in that year
B) The total amount steel used in the production of automobiles in that year
C) The total amount of flour used by bakeries to make bread in that year
D) An unused stock of goods produced in the previous year
A
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Over the post-war era, the gaps between industrial countries' living standards
A) disappeared. B) stayed the same. C) increased. D) decreased. E) fluctuated.
The choice between increasing government spending and cutting taxes often is related to
A) what an economist believes the value of both the tax multiplier and the government spending multiplier are. B) what an economist believes the right size and scope of government might be. C) whether an economist believes that government spending leads to complete crowding out. D) a and b E) all of the above
Suppose that the economy is currently below its long-run equilibrium output. Which of the following is an example of monetary policy that can help put the economy back toward equilibrium?
A) Increasing the money supply to reduce interest rates to encourage more spending and investment. B) Raising income taxes to help pay off government debt. C) Reducing the money supply to push interest rates higher to encourage more savings. D) Decreasing income taxes to encourage more spending and investment.
"An increase in the federal minimum wage causes an increase in unemployment among teenagers" is a:
A. statement of positive economics. B. statement of normative economics. C. testable value judgment. D. fallacy of composition.