Because the personal income tax is an automatic stabilizer,
A. inflationary gaps are impossible.
B. the budget deficit grows during a recession.
C. the deficit needed to cure a recessionary gap increases.
D. the structural deficit grows during a recession.
E. all of the above are correct.
Answer: B
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Financial intermediaries that are collected pools of funds from many investors are called: a. mutual funds. b. banks
c. credit unions. d. stockbrokers.
There are ten states in the democratic nation of Katlandia, and each state has ten thousand residents. Although incomes vary, each Katlandian pays a tax equal to the total cost of all government projects divided by the number of residents in the country. Currently, two states each have one army base. An army base adds $2 million to a state's local economy each year. In addition, in terms of increased security, the annual marginal benefit to Katlandia of having an additional army base is shown below. The total cost of an army base is $8 million per year.
The marginal benefit of adding a third army base equals the local marginal benefit of $2 million plus
the marginal benefit to Katlandia of ________. A. $22.5 million B. $0 C. $1 million D. $3 million
The table below shows the export and import values of automobiles, pharmaceuticals, and clothing in Country A and Country B. Country AExports ($Billions)Imports ($Billions)Automobiles2040Pharmaceuticals3030Clothing400Country BExports ($Billions)Imports ($Billions)Automobiles020Pharmaceuticals4040Clothing4535 In Country B, the product with the highest intra-industry trade (IIT) share is ________ and the product with the lowest IIT share is
A. clothing; pharmaceuticals. B. automobiles; pharmaceuticals. C. pharmaceuticals; automobiles. D. clothing; automobiles.
Stagflation describes a condition whereby
A. real GDP increases but nominal GDP stagnates at a relatively constant level. B. real GDP declines at a relatively constant price level. C. potential real GDP stagnates. D. real GDP rises or falls very little but inflation persists at fairly high rates.