A $50 billion increase in both government spending and taxes will
A) increase GDP by less than $50 billion. B) not change the level of GDP.
C) increase GDP by $50 billion. D) increase GDP by more than $50 billion.
C
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Specialization implies that an individual should produce the good for which he/she has the ________ opportunity cost.
A. necessary B. highest C. general D. lowest
The three major sources of economic profit are
A. risk-bearing, innovation, and exercise of monopoly power. B. risk-bearing, rent seeking, and discounting. C. innovation, invention, and speculation. D. exercise of market power, marginalization, and speculation.
Explain the law of one price and the theory of purchasing power parity. Why doesn't purchasing power parity explain all exchange rate movements in the short run? What factors determine long-run exchange rates?
What will be an ideal response?
Suppose a monopsonist must pay $10 per hour to attract 10 workers. If the same monopsonist must raise its wage to $11 per hour to attract the 11th worker, what is its marginal factor cost for labor?
A. $121 per hour. B. $11 per hour. C. $21 per hour. D. $10 per hour.