One reason the government enacts fiscal policy instead of waiting for the economy to correct itself is the automatic adjustment:
A. can take a very long time.
B. means a lower level of potential GDP.
C. will cause permanent inflation.
D. is generally not supported by government officials.
A. can take a very long time.
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The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S. ________ and the South Korean ________
A) GNP; GDP B) GDP; GDP C) GNP; GNP D) GDP; GNP
What is the best explanation for why China and India have received so much international interest and foreign investment?
A) Their large populations B) Their geographic location C) Their control over natural resources D) Government incentives provided to foreign firms
Naturally occurring diamonds are an example of
A) land. B) labor. C) physical capital. D) human capital.
The formal definition of price elasticity of demand is
A) change in quantity demanded divided by change in price. B) quantity demanded divided by price. C) percentage change in quantity demanded divided by percentage change in price. D) quantity demanded multiplied by price and divided by 100.