The government’s budget accounts for about 80 percent of GDP in the United States.
Answer the following statement true (T) or false (F)
False
You might also like to view...
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.
Cost-push inflation is due to:
a. labor cost increases. b. energy cost increases. c. raw material cost increases. d. all of these.
When social costs of an activity exceed private costs
A. this means that resources are being efficiently used. B. there is a tendency for resources to be under-utilized. C. there is a tendency for resources to be over-utilized. D. None of these is correct.
Consider a company town where the ABC Corporation is the only employer. Assume ABC sells its output in a purely competitive market. The city council is considering a proposal to lower the minimum wage from its current level of W2 to W1, as shown in the graph above. Given the marginal revenue product of labor (MRP), labor supply (SL), and marginal cost of labor (MRC) curves, this policy would:
A. Increase employment from L1 to L2
B. Increase employment from L1 to L3
C. Reduce employment from L4 to L3
D. Reduce employment from L1 to L0