Automatic stabilizers tend to exaggerate the severity of business cycles.
a. true
b. false
Ans: b. false
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One year nominal GDP was $286 billion and the price index was 88. Real GDP that year was ________.
A. $308 billion B. $252 billion C. $325 billion D. $262 billion
In the steady state of Solow's exogenous growth model, an increase in total factor productivity
A) increases output per worker and increases capital per worker. B) increases output per worker and decreases capital per worker. C) decreases output per worker and increases capital per worker. D) decreases output per worker and decreases capital per worker.
The national income accounting system provides a measure of:
a. only the total amount of profits made by business firms. b. the total value of all inputs used in production. c. the government budget surplus and deficit. d. the net exports of a nation. e. the output of an entire economy.
If legally owning a business can spur growth, why don't all business owners legalize their businesses?
A. Business owners don't care about economic growth. B. Legally owning a business opens new avenues for obtaining loans. C. Excessive regulations often make running a legalized business more cumbersome. D. Legalizing a business has no impact on business practices, so why do it?