In the classical model, government purchases or tax cuts are appropriate policies to raise GDP
a. True
b. False
B
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If government purchases are $400 million, taxes are $700 million, and transfers are $200 million, which of the following is true?
A) Public saving is $100 million. B) The budget deficit is $100 million. C) The budget deficit is $500 million. D) Public saving is $500 million.
Some governments have made great efforts to "formalize" informal firms by extending regulations and their enforcement. Might governments be better advised to ignore, or even help, informal firms?
What will be an ideal response?
Managers of profit centers earn more when their divisions
a. increase their sales and increase their costs b. decrease their sales and increase their costs c. decrease the costs of the components for which they are responsible d. increase the costs of the components for which they are responsible
A decrease in nominal incomes cause a:
a. rightward shift in the short-run aggregate supply curve. b. leftward shift in the short-run aggregate supply curve. c. rightward shift in the long-run aggregate supply curve. d. leftward shift in the long-run aggregate supply curve.