Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. To move the economy back to potential GDP, Congress should
A) raise taxes by $200 billion.
B) lower government purchases by an amount less than $200 billion.
C) lower government purchases by $200 billion.
D) raise taxes by an amount more than $200 billion.
E) lower taxes by $200 billion.
B
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Capital income in the U.S. equals approximately ________ of GDP.
A. 75 percent B. 10 percent C. 25 percent D. 50 percent
The most widely used measure of income inequality is
A. the Bureau of Labor Statistics' cost-of-living index. B. the Laffer curve. C. the Gemini coefficient. D. the Lorenz curve.
When graphing the per worker production function, ________ is on the horizontal axis and ________ is on the vertical axis
A) labor; real GDP B) the capital stock; real GDP C) the capital-labor ratio; real GDP per worker D) capital per worker; the labor force
Suppose Sam's Shoe Co. makes only one kind of shoe, which sells for $50 a pair. If they sold 500,000 pairs of shoes, then their total revenue would be:
A. $2,500,000. B. $10,000. C. $25,000,000. D. Cannot answer this question without knowing the cost per pair.