An increase in the stock of capital contributes to economic growth because it increases
A) federal funds rates.
B) labor productivity.
C) tax revenues.
D) the reserves of the banking system.
B
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The U.S. federal government spent more than $4 trillion in 2018, which implies that there were no opportunity costs faced by the United States.
Answer the following statement true (T) or false (F)
In economics, money is defined as
a. the total value of one's assets in current prices. b. the total value of one's assets minus the total value of one's debts, in current prices. c. the total amount of salary, interest, and rental income earned during a year. d. any asset people generally accept in exchange for goods and services.
Economists argue that the corporate income tax is an example of a tax with a high deadweight loss because
A) it encourages corporations to seek ways to evade taxes. B) taxing a corporation's income amounts to double taxing the earnings on individual shareholders' investments in corporations. C) some of the burden of the tax is passed on to consumers in the form of higher prices. D) it discourages corporations from undertaking capital investments to enhance market competitiveness.
In the Keynesian cross diagram, an increase in autonomous consumer expenditure causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to rise, and the IS curve to shift to the ________,
everything else held constant. A) up; left B) up; right C) down; left D) down; right