When the economy operates well below its productive capacity, an increase in any spending— whether it's government's or the private sector's—tends to be reflected primarily in a(n)
a. lower level of employment
b. increase in price
c. lower level of output
d. higher level of output and employment
e. increase in business inventories
D
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Compared to the situation before international trade, after the United States exports a good production in the United States ________ and consumption in the United States ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
When a positive externality exists, the market is said to fail because it overproduces the good associated with the positive externality.
Answer the following statement true (T) or false (F)
The percentage of property taxes collected by local governments is about _____
a. 15 percent b. 45 percent c. 75 percent d. 95 percent
If the aggregate supply curve is vertical, then the short-run Phillips curve will
a. be horizontal. b. also be vertical. c. slope upward. d. slope downward.