If aggregate output is below its equilibrium level ________
A) there is an excess demand for goods
B) actual output is below planned expenditure
C) firms will tend to replenish their low inventories driving output up toward equilibrium
D) all of the above
E) none of the above
D
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What do most empirical studies of labor supply in the United States conclude concerning the elasticity of labor supply and what implication does this have with respect to who bears the burden of the payroll tax?
What will be an ideal response?
Suppose when the price of jean-jackets increased by 10 percent, the quantity supplied increased by 16 percent. Based on this information the price elasticity of supply of jean-jackets is
A) 6%. B) 1.6%. C) 1.6. D) 0.625.
The national debt is
A. The accumulation of all annual deficit and surplus flows. B. A fairly risky asset that pays interest. C. The amount by which government spending exceeds tax revenues for a given year. D. The amount by which tax revenues exceed government spending for a given year.
The GDP deflator is the
A. difference between GDP and national income. B. price index used for the wholesale market. C. index used to measure deflation but not inflation. D. broadest-based price index available.