Changes in income tax receipts ______.
a. increase the effect of major upswings in GDP, but decrease the effect of major downswings in GDP
b. increase the effect of major downswings in GDP, but decrease the effect of major upswings in GDP
c. increase the effect of both major upswings and major downswings in GDP
d. decrease the effect of both major upswings and major downswings in GDP
d. decrease the effect of both major upswings and major downswings in GDP
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One role of the interest rate is to
A) allocate capital to its most efficient uses. B) redistribute income from the wealthy to the poor. C) reduce the rate of inflation by encouraging government borrowing. D) discourage saving and encourage current consumption.
According to the graph shown, if this economy were to open to trade, domestic producers would have to cut:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. production by 55 units.
B. production by 90 units.
C. prices by $3.
D. prices by $7.
If the Fed were to push unemployment below NAIRU, it is likely that:
A. inflation will increase. B. deflation will send the economy into a deflationary spiral. C. the dual mandate will be met. D. the economy would be operating efficiently.
If H represents the number of hours spent on an activity, then which of the following could represent a total benefit function?
A. 400H - 30H2 B. 400H + 30H2 C. -400H - 30H2 D. -400H + 30H2