If excessive aggregate demand causes prices to rise, which of the following would be a correct fiscal-policy action?
A. An increase in government expenditures
B. An increase in the money supply
C. An increase in Social Security payments
D. A tax increase
D. A tax increase
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U.S. medical care spending is
a. higher as measured by overall spending. b. Higher as measured by per capita spending. c. Higher as measured by a percentage of GDP. d. All of the above.
If the short run elasticity of demand for a good was greater than 1, an increase in the price of the good would tend to: a. increase total revenue in both the short run and the long run
b. increase total revenue in the short run but not the long run. c. decrease total revenue in the short run and the long run, but by more in the short run. d. decrease total revenue in the short run and the long run, but by more in the long run.
The following table contains data for the U.S. balance of payments in a prior year. Answer the question on the basis of this information. All figures are in billions of dollars.
U.S. goods exports +$793 U.S. goods imports -1573 U.S. exports of service +280 U.S. imports of services -222 Net investment income +5 Net transfers -81 Capital account -5 Foreign purchases of assets in the U.S. +1198 U.S. purchases of foreign assets -395 Refer to the table above. The data indicate that Americans: A. Bought foreign assets abroad more than foreigners bought assets in the U.S. B. Invested abroad more than foreigners invested in America C. Earned more from their investments abroad than foreigners earned from their investments in America D. Sold more products to buyers abroad than what foreign producers sold to buyers in America
Which of the following is NOT considered one of the factors of production?
A) land B) labor C) capital D) technology E) entrepreneurship