When the SRAS curve slopes upward, the actual affect of an increase in real autonomous spending on equilibrium real GDP is smaller than predicted by the multiplier because
A. the price level falls.
B. real GDP decreases.
C. the price level rises
D. real GDP increases.
Answer: C
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Suppose we have an economy in which G = 1100, t = 0.26, Y = 3800, and YN = 4000. The natural employment deficit is
A) 60. B) 200. C) 840. D) 286. E) -112.
The National Industrial Recovery Act (1933)
(a) did not permit businesses to set prices and production quotas. (b) established three advisory boards composed of government, Webb-Pomerene firms and members of the Federal Reserve System. (c) was thrown out by the Supreme Court in May 1935. (d) prohibited collective bargaining.
An economist might argue that U.S. national defense should be funded through tax revenues because: a. U.S. citizens are not very patriotic
b. the government is always a more efficient provider of goods than the private market. c. the government always seeks to act benevolently on behalf of its citizens. d. individuals who refuse to contribute to a national defense fund cannot be excluded from benefiting from national defense.
From 2000 to 2012 the U.S. had a trade
a. surplus and a large net capital inflow. b. surplus and a large net capital outflow. c. deficit and a large net capital inflow. d. deficit and a large net capital outflow.