Government policies that increase the long-term economic growth rate by a small amount result in ________ in average living standards.
A. no change
B. small increases
C. large increases
D. small decreases
Answer: C
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The focus of the Ricardian model is on how:
a. countries' resource bases explain international trade. b. countries' different technologies explain international trade. c. transportation costs explain international trade. d. different languages and cultures explain international trade.
The fact that supermarkets, a land-intensive form of organization, have become the dominant form of grocery store in the United States suggests that:
A) there is little or no potential for input substitution in the grocery store business. B) transportation costs are insignificant in the grocery store business. C) land is a relatively inexpensive input in the grocery store business. D) labor is relatively inexpensive in the grocery store business.
An inflationary gap is the amount by which aggregate expenditures ____ the amount required to achieve full-employment equilibrium GDP
a. exceed b. equal c. fall short of d. are greater than
Income effect results in _____
a. a change in the elasticity of demand of a consumer b. a change in the buying power of consumers c. a change in the opportunity cost d. a change in the permanent income of a consumer