A witness told a congressional committee that if the United States doubled its real GDP, it would be a much less livable society than it is today. Explain this view
What will be an ideal response?
The witness must be assuming that with such growth would come congestion, waste, and pollution. In other words, such growth in production would be at the expense of the environment and perhaps leisure time. There are those who believe in the philosophy “small is beautiful” and who would argue that we could improve living standards without any growth at all, let alone doubling the GDP. These people would argue that we could use our current resources much more efficiently and maintain the same or improved standard of living.
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Melissa offers you $1,000 today or $1,500 in 5 years. You would prefer to take the $1,500 in 5 years if the interest rate is
a. 8 percent. b. 9 percent. c. 10 percent. d. All of the above are correct.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Cyclical unemployment
A. occurs even when an economy is producing at a point on its production possibilities frontier. B. occurs only during a recession. C. tend to occur when an economy experiences inflation. D. is a part of an economy's natural rate of unemployment.
Gross domestic product (GDP) includes:
A. intermediate as well as final goods. B. foreign goods as well as domestically produced goods. C. used goods sold in the current time period. D. only final goods and services.