Whenever total planned expenditures differ from real GDP
A. unplanned inventories will change.
B. tax revenues will move the economy back to equilibrium.
C. government spending will adjust.
D. unplanned inventories will remain unchanged.
Answer: A
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Refer to the above figure. Which panel is consistent with the Fed selling bonds?
A) Panel A B) Panel B C) Panel C D) Panel D
According to the Keynesian model, increased foreign spending for U.S. goods is likely to
a. reduce total employment in the United States. b. increase total employment in the foreign country. c. reduce total output in the United States. d. increase total output in the United States.
The demand curve facing an individual producer of wheat is most likely represented by
a. Panel D. b. Panel C. c. Panel A. d. Panel B.
The federal income tax is consistent with the __________ principle of taxation, whereas an excise tax on sporting event tickets is consistent with the ___________ principle of taxation
A. benefits-received; ability-to-pay. B. benefits-received; pay-as-you-go. C. ability-to-pay; benefits-received. D. ability-to-pay; pay-as-you-go.