Refer to the information. If government now spends $80 billion at each level of GDP and taxes remain at zero, the equilibrium GDP:
The following information is for a closed economy:
A. will rise to $700.
B. will rise to $600.
C. will rise to $500.
D. may either rise or fall.
C. will rise to $500.
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
As more people imported cars from abroad, service facilities became widely available. This increased the value of imported cars to those who owned one. This is an example of a(n) ________
A) pecuniary externality B) network externality C) moral hazard D) adverse selection
John Rawls' argument for maximizing the well-being of those who are least well off in society recognizes _____
a. that everyone is the same b. that the disincentives toward earning income inherent in redistribution c. that social welfare is maximized when income is equalized d. a and c
Which of the following is the reason supply curves typically slope upward?
a. Opportunity cost of production increases as quantity supplied increases. b. Supply increases as opportunity cost decreases. c. Price increases as supply decreases. d. Quantity supplied is unrelated to price. e. The income and substitution effects of a price change.