According to? Keynes, when there is excess capacity in an? economy, the equilibrium level of real GDP per year is determined by
A. ?short-run aggregate supply.
B. ?long-run aggregate supply.
C. aggregate demand.
D. the price level.
Answer: C. aggregate demand.
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Firms in monopolistic competition can achieve product differentiation by
A) expanding plant size. B) exploiting economies of scale in production. C) advertising special characteristics. D) setting the price equal to average revenue.
The idea behind a flat tax is to _____
a. cut taxes on high-income taxpayers b. to raise taxes on high-income taxpayers c. increase progressivity d. minimize the excess burden of the income tax
The government budget constraint implies that
A) government borrowings = government spending+ transfers - taxes and user charges. B) government borrowings = taxes and user charges + government spending - transfers C) government spending = transfers - taxes and user charges - government borrowing. D) government spending = government borrowing - transfers - taxes and user charges
The newly industrialized Asian economies have developed by adopting the latest technology and investing in _____.?
Fill in the blank(s) with the appropriate word(s).