Refer to the table for a fictional economy. The changes in the budget conditions between 2000 and 2001 best reflect:
A. demand-pull inflation.
B. cost-push inflation.
C. an expansion of real GDP and an automatic increase in tax revenues.
D. a contractionary fiscal policy.
C. an expansion of real GDP and an automatic increase in tax revenues.
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According to the Weak Coase Theorem, in the absence of transactions costs, the assignment of property rights has no effect on
a. damages paid by liable parties. b. the distribution of income. c. the allocation of resources. d. economic efficiency.
One of the limitations of the national income accounting system is: a. valuing all output at its market price regardless of its contribution to society's economic welfare. b. placing a market value on all negative externalities
c. accurately measuring the value of leisure time. d. double counting food produced on a farm for family consumption. e. ignoring government production of goods and services.
The size of the spending multiplier depends on the level of real GDP
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 1.2 below to answer the question(s) that follow.
Figure 1.2Refer to Figure 1.2. The slope of the line between Points A and B is
A. 0.4. B. 1.2. C. 2.5. D. indeterminate from this information.