Which of the following will increase macroeconomic equilibrium real gross domestic product?
A. an increase in taxes
B. a decrease in productivity
C. an increase in input prices
D. an increase in government spending
Answer: D
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Tax policy conducted for the purpose of achieving full employment, price stability, or economic growth is an example of
A) discretionary fiscal policy. B) interest-rate policy. C) monetary policy. D) exchange-rate policy.
Which of the following statements is correct?
A) An increase in productivity moves the economy from inside the production possibilities frontier to the frontier itself. B) A reduction in unemployment shifts the entire production possibilities frontier outward. C) An increase in unemployment shifts the economy from a point outside the production possibilities frontier back to the production possibilities frontier. D) An increase in productivity shifts the economy from producing at a point on the production possibilities frontier to a point outside the production possibilities frontier. E) An increase in unemployment shifts the economy further inside its production possibilities frontier.
The study of economics would be superfluous if __________ did not exist
a. demand b. capital c. corporations d. profit e. scarcity
In a perfectly competitive industry, in the long run:
A. firms earn a positive economic profit. B. firms earn zero economic profit. C. firms earn a negative economic profit. D. firms might earn a positive, zero, or negative economic profit.