Economists before Keynes assumed that equilibrium GDP occurred
A. automatically.
B. only with the help of government stabilization.
C. if spending was generally greater than output.
D. only in socialist economies with central planning.
Answer: A
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In recent years, redistribution has been the fastest growing category of federal government outlays
a. True b. False
Which of the following statements about the monopolistically competitive market, in the long run, is true?
a. The resources are efficiently utilized. b. The firms make above-normal profit in the long run. c. The marginal-revenue curve coincides with the demand curve facing the firm. d. The firms produce the output level that is less than the output corresponding to the minimum of average total cost. e. The firms operate on the upward-sloping portion of the long run average cost curve.
A tax cut is likely to cause:
A. An increase in consumer spending. B. A decrease in saving. C. A decrease in aggregate demand. D. An increase in government spending.
When a domestic country exports goods to and imports goods from a foreign country, in the short run domestic:
A) producers in the exporting industry may be better off. B) consumers of the imported good may be worse off. C) consumers of the exported good may be better off. D) producers in the importing industry are better off.