According to the Keynesian approach, a decrease in taxes
A. will increase consumption by an amount of less than the change in taxes.
B. will increase consumption exactly by the amount of the taxes.
C. will decrease consumption, as the government will have to spend less.
D. will not impact consumption, as most consumption is autonomous.
Answer: A
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The total value of capital in the United States is around
A) $50 trillion. B) $10 trillion. C) $79 trillion. D) $100 trillion. E) $145 trillion.
A relatively steep aggregate demand curve indicates that
A) velocity is relatively constant. B) the economy is near full employment. C) inflation is relatively high. D) spending is insensitive to changes in the price level.
A production possibilities frontier that is bowed-inward implies
A) economies of scale. B) diseconomies of scope. C) economies of scope. D) no economies of scope.
If GDP grows at a rate of 3% per year, approximately how long will it take for GDP to double in size?
A) 12 years B) 21 years C) 23 years D) 35 years