In the basic Keynesian model, a decrease in transfer payments:
A. increases potential output.
B. reduces potential output.
C. increases short-run equilibrium output.
D. reduces short-run equilibrium output.
Answer: D
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A nation's capital stock was valued at $300 billion at the start of the year and $350 billion at the end. Consumption of private fixed capital in the year was $25 billion. Assuming stable prices, gross investment was ________.
A. $90 billion B. $50 billion C. $75 billion D. $25 billion
Economic growth is supported by
A) the rule of law. B) competent and honest government officials. C) an educated populace. D) openness to international trade and investment. E) all of the above.
Minimum-wage laws are most likely to affect the wages paid to
a. teenagers. b. people with advanced technical training. c. people who are self-employed. d. union members.
The ethnocentric view that most new products are developed and introduced in the US is a key weakness in the ______ theory.
Fill in the blank(s) with the appropriate word(s).