When the equation X = GDP - C- I - G yields a negative X, it represents a situation in which the country:
a. experiences runaway inflation.
b. experiences robust GDP growth.
c. experiences a huge budget deficit.
d. borrows to cover the difference between production and spending.
e. lends to cover the difference between production and spending.
d
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Core inflation:
A. measures the changes in prices for the entire market basket of the average urban consumer. B. is inflation measured using the producer price index. C. measures price changes for the market basket of the average urban consumer with food and energy costs taken out. D. is inflation measured using the retail price index.
Suppose a law firm negotiates a very low price for each of its 1000 employees to be members at the athletic club that is located next to the law firm. Which of the following is not likely to be true?
A. If the typical individual gym membership costs $50 per month, the law firm should expect to save $50,000 per month in wages. B. The firm can likely negotiate a lower per person price at the gym than each employee could negotiate alone. C. In the long run, the law firm will probably attract workers who value the gym benefit the most. D. The law firm can pay its workers less than a comparable law firm that does not offer the gym benefit. E. Some employees will take advantage of the gym benefit, while others will not.
Suppose the federal government is considering alternatives to increase the level of real GDP in order to reduce unemployment. It can only do one of the following. Which will have the smallest impact on the federal budget?
A. Decreasing transfer payments B. Increasing government spending C. Increasing transfer payments D. Decreasing government spending
A professor wants to convince his department that he would like to develop and teach a course titled, "Sex and Violence." The best way to gain the support of the department is to:
A. say that it will attract more students to the department. B. say that it will add to the rubric of knowledge. C. say that it is aligned with the university's student welfare policy. D. say that it will add to the diversity in the campus.