An increase in taxes on consumers will most likely cause a(n):
a. Increase in aggregate demand
b. Increase in aggregate supply
c. Decrease in aggregate supply
d. Decrease in aggregate demand
d. Decrease in aggregate demand
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One of the impacts of maturity transformation is that:
A) relatively liquid assets become relatively illiquid. B) it decreases the rate of inflation. C) it increases the rate of inflation. D) relatively illiquid assets become relatively liquid.
If imports are $100 million less than exports, government expenditures are $500 million, consumer expenditures are $1 billion, and gross investment spending is $500 million, then GDP is
A) $1 billion. B) $1.9 billion. C) $2 billion. D) $2.1 billion.
A key assumption of new growth theory is that
A) all technological change is the result of luck. B) higher incomes lead to a higher birth rate. C) a successful innovator has the opportunity to earn a temporary, above-average profit. D) the population growth rate is lower than the real interest rate.
Full-employment GDP is also known as
A) balanced-budget GDP. B) politico-economic GDP. C) potential GDP. D) realized GDP.