Social Security contributions are a tax on labor
a. True b. False
a
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The multiplier-accelerator model
A) suggests that a downturn in real GDP will lead to a sharp fall in investment, which leads to further reductions in GDP through the multiplier. B) emphasizes that current investment spending depends negatively on the expected future growth of GDP. C) links investment spending to stock prices. D) emphasizes the role of real interest rates and taxes.
Firms
A) have no influence on the circular flow in a market economy. B) purchase resources in the product market. C) sell resources in the factor market. D) sell goods in the product market.
If a production possibilities frontier is a downward sloping straight line, it
A. shows that there are no trade-offs in the production process. B. shows that resources are not efficiently allocated C. shows that production on the frontier implies that it is not possible to produce more of anything without producing less of something else. D. shows that resources are unemployed.
Law of Supply and Demand
What will be an ideal response?