For the economy to be in equilibrium, government purchases plus ________ must equal saving plus ________.
A. tax revenue; investment
B. consumption; investment
C. tax revenue; consumption
D. investment; tax revenue
Answer: D
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Government stabilization policy would be unnecessary if the economy automatically gravitated toward
A. full inflation. B. full employment. C. full recession. D. an inflationary gap.
In an expansion, federal tax revenues increase proportionally more than real GDP without the need for any government policy. This increase is an example of
A) the effect of deficit spending. B) discretionary fiscal policy. C) automatic fiscal policy. D) automatic monetary policy. E) discretionary monetary policy.
In the figure above, when the price of a CD is $8.00, total producer surplus from all the CDs will be
A) zero. B) greater than at $10.00 per CD. C) $20 million. D) $10 million.
A critical element of entrepreneurship (as opposed to managerial skills) is
A) leadership skills. B) risk taking. C) technology. D) political skills.