Budget projections for 2014-2020 indicate both higher levels of government spending and large budget deficits. Non-Keynesian economists argue that this will lead to
a. lower taxes, which will reduce aggregate supply and retard long-term growth.
b. growth rates above the historic average for the decade.
c. an increase in aggregate demand and real output.
d. higher interest rates, higher taxes, and sluggish future growth.
D
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If a firm operates in a imperfectly competitive market, it may be able to price its products in local currencies above world prices for their goods. This is called
A) pricing to market. B) trade war. C) trade stickiness. D) price gauging.
A negative externality can be internalized by
A. persuasion. B. the imposition of a tax. C. the assignment of property rights. D. a voluntary agreement. E. all of the above
The catch-up effect refers to the idea that poor countries, despite their best efforts, are not likely ever to experience the economic growth rates of wealthier countries
a. True b. False Indicate whether the statement is true or false
Which scenario best demonstrates how money functions as a unit of account?
a. Haley knows that a gel pen costs $1.50 and a jar candle is $9, so a candle is equal to six pens. b. Gregory gives Carlito $100 and receives a new pair of jeans in exchange. c. Miguel makes a payment on his car loan every month. d. Each quarter, Celeste deposits money into a Roth IRA to save for her retirement.