the government may reduce government spending or increase taxes in order to eliminate
What will be an ideal response?
inflationary GDP gap
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Government policies that support education and job training cause:
A. A decrease in GDP per capita, since dollars are not being spent on output. B. An increase in the size of the labor force. C. An increase in productivity. D. An increase in the ratio of capital to labor
As the interest rate rises, the cost of a given investment project __________ and businesses invest __________
A) rises; more B) rises; less C) falls; more D) falls; less
An economy's marginal social benefit curve for a private good is obtained by summing the individual marginal
a) cost curves horizontally b) benefit curves vertically c) benefit curves diagonally d) benefit curves horizontally
Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 25 percent, an initial deposit of $3,000 will lead to a total increase in deposits of:
A. $750. B. $2,250. C. $12,000. D. $36,000.