The relationship between the growth rate of an economic variable, gt, and its level, yt, can be approximated by
A) gt = yt - yt - 1.
B) gt = logt - log yt - 1.
C) yt = log gt - log gt - 1.
D) log gt = yt - yt - 1.
B
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The government of Silverado raises revenue through a general income tax paid by all its residents to operate the city's marina. The marina is used by private boat owners. This method of raising revenue to operate the marina is
A) inconsistent with the benefits-received principle. B) consistent with the benefits-received principle. C) consistent with the ability-to-pay principle. D) inconsistent with the ability-to-pay principle.
The years from 1945 to 1973 are notable for ________
A) a Great Moderation B) generally low inflation C) brief, but severe, recessions D) all of the above E) none of the above
Suppose that the government wants to increase income without changing the interest rate. How can they accomplish this?
a. Increase government spending and reduce the money supply. b. Increase government spending and the money supply. c. Increase taxes and the money supply. d. Reduce government spending and increase the money supply.
People behave rationally when they
A) follow the advice of government leaders. B) never have regrets about their decisions. C) make decisions they think will make themselves better off. D) make decisions with a focus only on financial outcomes.