When there are implicit costs of production,
a. accounting and economic profit are equal
b. opportunity costs of production are zero
c. explicit costs of production are small
d. accounting profit will exceed economic profit
e. economic profit will exceed accounting profit
D
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A Social Security system in which payroll taxes that workers and their employers pay in go directly to retirees and other beneficiaries is known as
A) a pay-as-you-go system. B) an individual-account system. C) a primary-deficit system. D) a social-lockbox system.
If $30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase by:
a. $30 billion. b. $90 billion. c. $100 billion. d. $210 billion. e. $300 billion.
Resource prices will fall and short-run aggregate supply will increase if
a. current output exceeds the economy's full-employment level. b. current output is less than the economy's full-employment level. c. the actual rate of unemployment is less than the natural rate of unemployment. d. exports exceed imports.
Real GDP is GDP
A) in current-year prices. B) in base-year prices. C) in GDP-prices. D) in that year's prices.