Refer to the diagram. If the full-employment level of GDP is B and aggregate expenditures are at AE 2 , the:
A. inflationary expenditure gap is ed.
B. recessionary expenditure gap is BC.
C. inflationary expenditure gap is eg.
D. economy is in equilibrium, at full employment.
D. economy is in equilibrium, at full employment.
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The consumer maximizes his total utility (measured in money terms) when, at his chosen quantity of every good he buys, marginal utility
A. equals zero. B. divided by price equals zero. C. equals price. D. equals total utility.
Which is an example of restrictive fiscal policy?
A) An increase in the discount rate B) An increase in the federal funds rate C) An increase in reserve requirements D) A lowering of tax rates E) A lowering of government spending
Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more elastic), the larger the burden of a sales tax that is borne by the sellers
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. The federal government collects more in Social Security taxes than in personal income tax. B. The federal government collects more in Social Security taxes than in corporate income tax. C. The federal government collects more in personal income tax than in corporate income tax. D. None of these statements are false.