A $100 billion increase in government purchases will have the same effect on real GDP as a $100billion decrease in net taxes
a. True
b. False
Indicate whether the statement is true or false
False
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Use the neoclassical theory of investment to explain why technological progress that reduces the price of computers (and related information technology) impacts investment differently than technological progress that makes computers more productive
What will be an ideal response?
The currency of the European Union, the euro, was established as part of the Bretton Woods agreements
a. True b. False Indicate whether the statement is true or false
Suppose a 25-year-old worker purchases a $5,000 bond that pays 6% interest per year which she plans to withdraw when she retires in 40 years. How much will the $5,000 accumulate to in 40 years? If the worker faces a marginal tax rate of 30% on interest income, how much will the $5,000 accumulate to in 40 years?
If aggregate production in the economy exceeds aggregate purchases
A. firms are producing more during the year than they are selling. B. unintended inventory investment is negative. C. the economy is operating at a real GDP greater than equilibrium GDP. D. saving must be negative.