At long-run macroeconomic equilibrium, ________
A) an inflationary gap exists
B) real GDP equals potential GDP
C) a recessionary gap exists
D) real GDP is less than potential GDP but is as close as it is possible to be
B
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Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________
A) rises; increases B) rises; does not change C) falls; does not change D) falls; decreases E) falls; increases
An example of a payroll tax in the United States is
A) taxes on corporate profit. B) Social Security taxes. C) property taxes on real estate. D) excise taxes on gasoline.
The use of cash for in-store purchases, declined from ________% in 1995 to ________ % in 2008
A) 50, 35 B) 60, 29 C) 80, 75 D) 48, 10
Which of the following would you expect to lead to worsening environmental quality?
A. Freer trade in capital equipment that incorporates environmentally friendly technologies B. An export or production subsidy from the Chinese government to Chinese steel manufacturers C. An export subsidy for producers of clean technology for producing paper D. Freer trade that promotes production of manufactured goods in developing countries where environmental laws are strict