Taxes are the difference between
A. GDP and net exports.
B. GDP and consumer spending.
C. consumer spending and saving.
D. GDP and disposable income.
Answer: D
You might also like to view...
The federal government buys $10 million worth of aircraft engines from General Motors. If the MPC is .80 what will be the impact on aggregate demand, other things being equal? a. Aggregate demand will increase $8 million
b. Aggregate demand will increase $12.5 million. c. Aggregate demand will increase $18 million. d. Aggregate demand will increase $50 million.
Which of the following is most likely to generate a surplus?
A. a price ceiling B. a price floor C. an illegal market D. all of these
Explain "haircuts" when a government defaults its debt
What will be an ideal response?
In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?
A. In the long run, the firm has no incentive to alter its scale of operations. B. In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal. C. Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC. D. In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.