In the above figure, at the price level of 140 and real GDP of
A) $15 trillion, firms will not be able to sell all their output.
B) $5 trillion, firms will not be able to sell all their output.
C) $5 trillion, consumers will not be able to buy all the goods and services they demand.
D) $15 trillion, consumers will not be able to buy all the goods and services they demand.
A
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If the government is running a cyclically adjusted budget deficit, ________ fiscal policy is ________ because aggregate expenditure is increasing
A) discretionary; contractionary B) discretionary; expansionary C) expansionary; ineffective D) contractionary; appropriate
A change in a price of a substitute input for labor will cause
A) a change in the demand for labor in the opposite direction of the price change. B) no change in the demand for labor. C) a change in the supply of labor in the opposite direction of the price change. D) a change in the demand for labor in the same direction of the price change.
The U.S. tax and transfer study done by economists Chamberlain and Prante of the Tax Foundation note that households in the top income quintile received about:
A. 75 cents in government spending for every dollar they paid in taxes B. 60 cents in government spending for every dollar they paid in taxes C. 40 cents in government spending for every dollar they paid in taxes D. 20 cents in government spending for every dollar they paid in taxes
One desirable outcome of a market economy is that it leads to a more equitable distribution of income
Indicate whether the statement is true or false