Equal increases in government purchases and taxes will:
A. increase the equilibrium GDP and the size of that increase varies directly with the size of
the MPC.
B. increase the equilibrium GDP and the size of that increase is independent of the size of the
MPC.
C. increase the equilibrium GDP and the size of that increase varies inversely with the size of
the MPC.
D. decrease the equilibrium GDP and the size of that decrease is independent of the size of
B. increase the equilibrium GDP and the size of that increase is independent of the size of the
MPC.
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In the spring of 1994, Northwest Airlines took the independent action of reducing fares on its flights. Other competing airlines quickly matched the fare cuts. These actions might be interpreted as:
A) a noncooperative game. B) a cooperative game. C) a constant sum game. D) a competitive game.
The unemployment rate is the percentage of the:
a. civilian labor force that is unemployed or working part-time. b. civilian labor force that is unemployed. c. civilian labor force that is unemployed less the number of government workers. d. adult population that is unemployed. e. adult population that is unemployed or looking for a better job.
The individual who brings together economic resources and assumes the risk in a capitalist economy is called the:
A. stockbroker. B. banker. C. manager. D. entrepreneur.
The equity of a tax system concerns whether the tax burden is distributed equally among the population
a. True b. False Indicate whether the statement is true or false