Refer to Table 10.1. Suppose that all of the information given in the Table remains the same except that taxes increase by $1.0 billion and transfers increase by $1.5 billion
If potential GDP equals $30 billion, by how much would government purchases have to change for equilibrium GDP to equal potential GDP? A) $1 billion
B) $1.25 billion
C) $1.5 billion
D) $5 billion
A
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When the Fed raises the required reserve ratio, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. c. increases the amount of excess reserves that banks hold, encouraging them to make loans to he general public. d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
Mass marketing involves
A. using all types of media, such as television and radio, to reach as many consumers as possible. B. lower-cost methods of advertising. C. Internet ads only. D. using direct mailings only.
If a product has zero external costs, then marginal social cost equal marginal private cost
Indicate whether the statement is true or false
One commonly used test in checking for the presence of autocorrelation when working with time series data is the ____
a. F-test b. Durbin-Watson test c. t-test d. z-test e. none of the above