Which of the following is true?
a. The size of the economic pie to be divided among a country's residents is fixed.
b. Government tax and transfer programs have exerted a strong equalizing impact on the distribution of income in the United States.
c. The method of allocating income is relevant to the issue of fairness as well as the pattern of income distribution.
d. The optimal distribution of income can be determined by objective economic criteria.
C
You might also like to view...
The aggregate demand curve or schedule shows the relationship between the total demand for output and the ________.
A. income level B. price level C. interest rate D. real GDP
Which of the following situations leads to an unplanned increase in inventories of $2.0 trillion?
A) real GDP = $5.0 trillion and aggregate planned expenditures = $5.0 trillion B) real GDP = $6.0 trillion and aggregate planned expenditures = $4.0 trillion C) real GDP = $8.0 trillion and aggregate planned expenditures = $5.0 trillion D) real GDP = $5.0 trillion and aggregate planned expenditures = $7.0 trillion E) More information is needed about planned investment and actual investment.
Foreign exchange rates are
A. price at which purchases and sales of foreign goods take place. B. movement of goods and services from one country to another. C. the price of one currency in terms of a second currency. D. differences between exports and imports.
According to real business cycle theory, an increase in financial frictions might lead to ________, if ________
A) a decrease in output; the rise in the credit spread causes a leftward shift of aggregate demand B) a decrease in inflation; the disruption of capital markets results in a leftward shift of long-run aggregate supply C) a decrease in output; the disruption of capital markets results in a leftward shift of long-run aggregate supply D) a decrease in output; a decline in expected output causes a leftward shift of aggregate demand