Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential
B. expansionary; lower; potential
C. expansionary; higher; potential
D. recessionary; lower; lower
Answer: A
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If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?
a. 4.29 percent per year b. 1.83 percent per year c. 8.45 percent per year d. 1.18 percent per year
An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?
a. both the changes in information technology and unemployment insurance b. only the changes in information technology c. only the changes in unemployment insurance d. neither the changes in information technology nor the changes in unemployment insurance
Many financial instruments are standardized because:
A. it is believed that most parties to a contract do not read them anyway. B. the standardization of contracts makes them harder to understand. C. it is required by the government. D. complexity is costly, the more complex a contract, the more it costs to create.
Price controls
A. are government-mandated minimum or maximum prices that may be charged for goods. B. exist when firms decide that they want to charge a higher price for their product. C. exist when consumers boycott a product. D. are the benefit of discount stores like Sam's Club.