Which of the following is not true when the economy is fully employed and government bonds are sold to finance greater government spending?
A. The government is running a cyclical deficit.
B. This action results in crowding out.
C. The government is running a structural deficit.
D. This pushes the economy along its production possibilities curve toward more public sector goods.
Answer: A
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?Scenario: You are a U.S. taxpayer who had taxable income of? $200,000 in 2017. You paid? $49,400 in individual income? taxes, and you paid 33 cents of the last dollar you earned as individual income tax. Your marginal tax rate is? ________
A. 33 percent B. 0 percent C. 49.4 percent D. 24.7 percent
If real Gross Domestic Product (GDP) is above its equilibrium level
A. firms accumulate unplanned inventories. B. planned investment is greater than planned saving. C. firms are not maximizing their profits. D. planned consumption is less than actual consumption.
A cooperative equilibrium results when firms
A) choose the best strategy regardless of what other players do. B) choose the strategy that maximizes the total game payoff. C) choose the strategy that minimizes the payoff to other players. D) choose a strategy by random chance.
A recession is a decline in
A. the inflation rate that lasts six months or longer. B. real GDP that lasts six months or longer. C. the unemployment rate that lasts six months or longer. D. potential GDP that lasts six months or longer.