Because of time lags, automatic stablizers are
A. have no effect on real GDP at all.
B. more effective than discretionary fiscal policy in stablizing real GDP.
C. equally effective as discretionary fiscal policy in stablizing real GDP.
D. less effective than discretionary fiscal policy in stablizing real GDP.
Answer: B
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The public debt is
A) an excess of government spending over government revenues during a given time period. B) all federal government debt irrespective of who owns it. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) the total value of all outstanding federal government securities.
________ is(are) the profits that a government receives because the value of money printed is greater than the cost of printing it
A) Seignorage B) Money revenue C) Currency gain D) Printing income
If the price elasticity of demand for a good is 5.0, then a 10 percent increase in price results in a
a. 0.5 percent decrease in the quantity demanded. b. 2.5 percent decrease in the quantity demanded. c. 5 percent decrease in the quantity demanded. d. 50 percent decrease in the quantity demanded.
Which of the following is an example of nonlabor income?
A. wages B. inheritance C. a month-pay bonus D. proprietors' income