In Figure 20.2, the increase in Real GDP might reflect 
A. increased consumer confidence.
B. lower marginal tax rates on capital income.
C. increased standards of environmental protection.
D. increased current government spending.
Answer: B
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Which of the following is NOT included in measured U.S. GDP?
A) the value of the pizzas produced at Pizza Hut in Kansas City B) the value of leisure time C) the value of the goods produced at a French owned plant in Atlanta, Georgia D) the value of the services produced by a lawyer in Tampa, Florida E) the value of a plane produced by Boeing in Washington and sold to Air France
Banks create money when they
A. add to their reserves in the Federal Reserve Bank. B. accept deposits of cash. C. sell government bonds. D. exchange demand deposits for loans to businesses and individuals.
Define the field of economics known as macroeconomics.
What will be an ideal response?
A higher price for a good implies that
A. the sacrifice of utility of another good has increased. B. the marginal utility of another good has decreased. C. the total value of the good to the consumer has increased. D. the marginal utility of the good has declined.