For the following policy, indicate whether it will or will not increase the rate of economic growth in the United States. A. Congress passes and investment tax credit, which reduced a firm's taxes if it installs new machinery and equipment. It is likely that the rate of economic growth will ___________
Fill in the blank(s) with the appropriate word(s).
Answer: increase
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The rate at which aggregate supply changes to restore equilibrium at potential output depends crucially on:
a. how quickly planned investment spending adjusts to changes in population growth b. how quickly planned consumption spending adjusts to changes in the price level and nominal wages. c. how quickly technology changes to increase aggregate supply. d. whether the economy is experiencing a recessionary gap or an expansionary gap. e. how quickly real wages adjust to restore full employment in the labor market.
Which of the following observations concerning phases of a business cycle is incorrect? a. The maximum amount of unemployment occurs exactly at the trough. b. The expansion phase is measured from the trough to the peak
c. The trough is the point in time when output stops declining. d. The contraction phase is also called recession.
One advantage of ____________ is being able to set the industry standard.
Fill in the blank(s) with the appropriate word(s).
Which region of the world experienced a decade-long crisis and stagnant or even negative growth rates during the 1980s?
A) Latin America B) East Asia C) The United States and Canada D) The European Union