Which of the following is an example of an automatic stabilizer?
A. The reduction in the money supply that occurs as banks become less willing to make loans during a recession
B. The reduction in real wages that occurs as the economy goes into a recession
C. The increase in government spending that occurs as the result of new spending bills passed by Congress
D. The rise in tax revenue that occurs as a result of growth in real GDP
D. The rise in tax revenue that occurs as a result of growth in real GDP
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If the per-worker production function shifts up
A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. B) the per-worker production function becomes flatter. C) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. D) negative technological change has occurred in the economy.
Rental Car Maintenance Why do rental cars require more maintenance in their first 50,000 miles than comparable cars driven by private owners?
Personal consumption expenditures include
a. all goods that business firms buy b. the purchase prices paid for stocks and bonds by individual households c. the construction of residential housing d. all goods and services bought by households e. the corrected value of housewives' services
What could low productivity growth in a country suggest?
What will be an ideal response?