If actual output equals potential output, unusually slow potential output growth would tend to result in:
A. a recession.
B. an output gap.
C. an expansion.
D. a recessionary gap.
Answer: A
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The Fourteenth Amendment was applied to the railroads in the Santa Clara County v Southern Pacific Railroad (1886) decision even though the original intent of that amendment had been to protect the property of former slaves
Indicate whether the statement is true or false
This year, Abigail earned $15,000 and she paid 15 percent in income and payroll taxes. She qualified for Medicaid and food stamps. For every $100 that she earns, Abigail loses $35 in Medicaid benefits and $15 in food stamps. Abigail faces an effective marginal tax rate of
a. 15 percent. b. 35 percent. c. 50 percent. d. 65 percent.
Keynesian economics includes the idea that
A. prices adjust to clear the markets. B. economic policies are ineffective. C. the economy is basically stable. D. labor markets don't always clear due to wage rigidities.
The purchasing power parity predicts that if the price level in the US falls relative to Mexico,
a. The dollar will appreciate relative to the peso b. The dollar will depreciate relative to the peso c. There is no effect on either currency d. PPP predicts price level will normalize in the long-run