Explain the difference between discretionary and automatic spending by the government.
What will be an ideal response?
Most of the spending by the federal government in any given fiscal year is the result of decisions made in prior years. These expenditures occur automatically and are considered to be uncontrollable. Discretionary spending refers to the items that are not determined by past legislative or executive commitments. This is the spending that the president and Congress have the most control over.
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The aggregate demand curve or schedule shows the relationship between the total demand for output and the ________.
A. income level B. price level C. interest rate D. real GDP
The Social Security tax is a tax that Congress imposes equally on both employers and employees. Does this mean that the burden of this tax is shared equally between firms and workers? Explain
What will be an ideal response?
Someone saying that he wants to lose weight, but ordering dessert is an example of:
A. rational decision making. B. rational behavior. C. irrational behavior. D. utility-maximizing behavior.
If the MRP of labor decreases, labor:
A. demand will decrease. B. demand will increase. C. supply will increase. D. supply will decrease.