If the economy has been producing at a point where real GDP is less than potential GDP, what fiscal policy can the federal government use to restore real GDP to potential GDP?
A) decrease the quantity of money
B) raise the interest rate
C) increase taxes
D) cut government expenditure on goods and services
E) cut taxes
E
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Which sum of money most adequately represents the value someone places on the works of Shakespeare? The sum they would be willing to pay to
A) purchase a set of Shakespeare's complete works. B) purchase a set of Shakespeare's complete works if they did not already own a set. C) purchase a set of Shakespeare's complete works if they did not have ready access to a set. D) purchase a set of Shakespeare's complete works if they had no other way to obtain access to the complete works. E) purchase a set of Shakespeare's complete works if they had no other way to obtain copies of any of them to read.
Most agree that ______________ is the degree to which the overall quality of one's life is judged as favorable. The General Social Surveys (GSS) of the United States asks questions about this
a. Happiness b. Fortitude c. Effectiveness d. Decision making
A tax is imposed on orange juice. Consumers will bear the full burden of this tax if the: a. price elasticity of demand for orange juice equals 1.0. b. demand for orange juice is perfectly elastic
c. demand for orange juice is unit elastic. d. demand curve for orange juice is perfectly inelastic.
Holding other factors constant, if terrorist attacks increase the desire for precautionary saving, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease