Why do some economists think that taxing capital gains results in a locked-in effect?
What will be an ideal response?
Investors may be reluctant to sell stocks that have substantial capital gains.
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Traditionally, economists regarded improvements in technology as
A) unrelated to economic growth in any systematic way. B) the most important factor that helped explain economic growth, and basically the only factor that would cause economic growth. C) an important factor in explaining economic growth that was due to economic forces that also could easily be explained. D) an outside factor that helped explain economic growth.
Total factor productivity shocks are not a good explanation of economic fluctuations in the New Keynesian model for all the following reasons except
A) they do not generate output fluctuations. B) employment drops when TFP increases. C) the real wage drops when TFP increases. D) they do not generate price fluctuations.
The current account in a nation's balance of payments accounts includes
a. exports of U.S. computers b. imports of German automobiles. c. purchases of foreign stocks. d. Both a and b e. All of the above
Refer to the information provided in Figure 6.15 below to answer the question that follows.
Figure 6.15Refer to Figure 6.15. If the price of a hot dog is $2, Jason's income is
A. $25. B. $200. C. $300. D. indeterminate because the price of sandwiches is not given.