A decrease in net taxes:
a. increases GDP as much as an equal decrease in government purchases.
b. increases GDP less than an equal increase in government purchases.
c. decreases GDP more than an equal decrease in government purchases.
d. changes GDP in an unpredictable manner
e. has no effect on GDP.
b
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Refer to Figure 11-4. The movement from A to B to C illustrates
A) diminishing returns to labor. B) an improvement in technology. C) a decline in capital per worker. D) diminishing returns to capital.
According to the "beachhead effect," in order to undo the effects of a strong-dollar period, the real value of the dollar
A) must fall to at least half of its value before appreciation of the dollar began. B) must fall to the value it had before appreciation of the dollar began. C) must fall to a much lower level than it had before appreciation of the dollar began. D) must actually appreciate before it depreciates to undo the effects of a strong-dollar period.
Supplier power tends to be high when
a. your firm purchases critical inputs from the supplier b. your input choices are highly differentiated c. Both A&B d. None of the above
Assume that a doctor makes $200 per hour, a lawyer $250 per hour, an architect $140 per hour, a professor $50 per hour, and a waiter $35 per hour. Which of these professionals is most likely to spend time to negotiate with a car dealer?
a. The doctor b. The lawyer c. The architect d. The professor e. The waiter