Once the expenditure schedule has been adjusted for tax levels, the determination of equilibrium GDP
a. is no longer possible.
b. becomes much more difficult.
c. proceeds exactly as before.
d. requires a higher multiplier value.
c
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Think about each of the items in the list and explain how they affect incen-tives and might change the choices that people make:
What will be an ideal response?
Refer to Figure 4-4. What is the value of the deadweight loss at the equilibrium price of $15?
A) $0 B) $40 C) $60 D) $100
A quota subscription is
A) the maximum amount of funds that can be drawn at the World Bank without a formal proposal. B) the maximum amount that a private investor can invest in foreign firms. C) a nation's account at the International Monetary Fund. D) when an investor sets limits on the proportion of their portfolio that will contain foreign investments.
Economist John Maynard Keynes is famous for saying, "In the long run, we are all dead." He is referring to the:
A. length of time it can take the economy to recover to potential GDP without policy intervention. B. permanent inflation that results in long-run adjustments. C. fact that no policy can affect the long-run equilibrium. D. notion the economy is sure to collapse in the long run.