Refer to Table 16-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if Congress and the president had taken no action?
A) real GDP and potential GDP B) real GDP and the inflation rate
C) real GDP and the unemployment rate D) potential GDP and the inflation rate
B
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Demand is elastic when a price ________ results in total revenue ________
A) rise, decreasing B) fall, decreasing C) rise, increasing D) fall; remaining constant
Tim has a toenail clipping business that is a sole proprietorship. If he is sued for a botched pedicure
A) he has limited liability. B) he has separation of ownership and control. C) all of his personal assets are at risk. D) he will be taxed doubly.
The additional cost a firm will incur by producing one additional unit of output is the:
A. variable cost. B. marginal cost. C. fixed cost. D. total cost.
How did the existence of the baby boom generation change demand in the United States?
a. Demand was raised for different goods with each age the baby boomers reached. b. After they reached the teenage years, the baby boomers were integrated into the society and no longer affected demand. c. People were poorer because they had so many children, so demand was lowered. d. The baby boomers did not raise demand until they became adults, when they had their own money to spend.