Research on productivity shocks has shown that
A. there have been no identifiable productivity shocks in the U.S. economy since World War II.
B. large productivity shocks produce only small deviations in aggregate output.
C. productivity shocks have only nominal effects.
D. small productivity shocks can explain large business cycle fluctuations.
Answer: D
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Of the three primary tax sources of revenue for the U.S. federal government, which of the following has displayed no long-term trend as a percentage of GDP since 1962?
A) corporate income taxes B) social insurance taxes C) sales and excise taxes D) individual income taxes
With higher future taxes
A) current consumption declines. B) current consumption stays the same. C) current consumption increases. D) current consumption depends on other factors.
If a firm's demand curve in a monopolistically competitive market is shifting left:
A. competition is likely entering with similar products. B. firms must be exiting the industry. C. economic profits must be increasing. D. None of these statements is true.
One of the limitations of the national income accounting system is: a. valuing all output at its market price regardless of its contribution to society's economic welfare. b. placing a market value on all negative externalities
c. accurately measuring the value of leisure time. d. double counting food produced on a farm for family consumption. e. ignoring government production of goods and services.