An increase in Social Security payments to retired persons has what effect on equilibrium income?
a. GDP will fall.
b. GDP will rise.
c. GDP will remain the same.
d. GDP will fall by less than the increase in payments.
b
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If two goods, J and K, are complements, then which of the following statements is FALSE?
A) They are consumed together. B) An increase in the price of J causes the demand for K to rise. C) When the quantity demanded of J increases, the demand for K increases. D) A decrease in the price of K causes an increase in the demand for J.
The optimal mark-up is: m = -1/ (E+1). When the mark-up on cookware equals 50%, then demand elasticity (E) for cookware is:
a. -1 b. -1.5 c. -2 d. -3
A depression is different from a recession in that
A. a recession has inflation and a depression does not. B. a depression is much worse. C. a depression has inflation and a recession does not. D. a recession is much worse.
Refer to the data. Consumption of fixed capital (private sector) is:
Answer the question on the basis of the following national income data. All figures are in billions of dollars.
A. $23.
B. $14.
C. $32.
D. $26.