In the short run, when the economy is at equilibrium, there (2)
What will be an ideal response?
1) may be high unemployment
2) may be an inflationary GDP gap
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How can the long-run equilibrium level of real Gross Domestic Product (GDP) increase without the price level changing?
What will be an ideal response?
Agencies budgetary requests will be excessively large because _____
a. demand for government services is always increasing b. they want to make the President happy c. they know that their final budget will be smaller than their requests d. of logrolling
Dynamic tax analysis assumes
A) all of the present tax rates will be in place for a minimum of twenty years. B) changes in the tax rates have no effect on the tax base. C) changes in the tax rates have no effect on tax revenue. D) changes in the tax rates will change the tax base.
An increase in total revenue will result if
A) demand is inelastic and price decreases. B) demand is elastic and price decreases. C) demand is elastic and price increases. D) demand is unitary elastic and price increases.