In an effort to balance the federal budget, an increase in Social Security taxes is passed. What is the most likely effect of this on equilibrium GDP?
A. GDP will increase.
B. GDP will decrease.
C. GDP will not change but prices will rise.
D. GDP will not change but employment will increase.
Answer: B
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Monopolies differ from perfectly competitive firms in the long run because
a. perfectly competitive firms can earn economic profit b. monopolies can earn economic profit c. monopolies produce a smaller share of the industry output d. patents and copyright laws protect monopolists for as long as they desire e. monopolists have long-run average cost curves
In which of the following markets are we most likely to find a monopoly?
a. Automobile production. b. Air travel. c. First-class mail delivery. d. Clothing production.
Refer to Table 9.2. (Data are expressed in billions of dollars.)Table 9.2Full Employment Income (Output)Consumers Desire to SpendInvestors Desire to SpendTotal Private SpendingTotal Saving$500$300$250$________$________600375250$________$________700450250$________$________800525250$________$________If the full-employment level of income (YF) in Table 9.2 is $800 billion,
A. The economy is in equilibrium. B. There is an inflationary gap of $250 billion. C. There is a recessionary gap of $275 billion. D. There is a recessionary gap of $25 billion.
Bee's assembly line job has been replaced by robots, and Bee lacks abilities and skills required to attain other jobs. She is considered
A. a discouraged worker. B. frictionally unemployed. C. seasonally unemployed. D. structurally unemployed.