What made the recession of 2007-2009 different than any other recession since the Great Depression?
A) the government did not implement a fiscal stimulus
B) the Fed failed to reduce interest rates
C) it was accompanied by a financial crisis
D) the impact was primarily limited to the financial sector
A
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GDP is different than GNP in that
A) it accounts for net unilateral transfers. B) it does not account for indirect business taxes. C) it does not account for a country's production using services with foreign-owned capital. D) it accounts for depreciation. E) it is unhelpful when tracking national income.
If the government's goal is to generate a certain amount of tax revenue, a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare
Indicate whether the statement is true or false
Which of these trends in the nominal and real interest rates has been observed in the U.S. economy? a. During the recession of 2009, the nominal interest rate was almost equal to the real interest rate. b. In the mid 1970s, the nominal interest rate
was very low while the real interest rate was very high. c. In the mid 1990s, the nominal interest rate was almost equal to the real interest rate. d. In the 1980s, the real interest rate was very low while the nominal interest rate was very high.
In the long run,
a. competitive firms' profits are zero. b. competitive firms' variable costs are zero. c. competitive firms' ATC curves shift upward or downward to ensure that all demand is satisfied. d. the number of firms in the market is fixed.