Refer to the diagram in which T is tax revenues and G is government expenditures. All figures are in billions. The equilibrium level of GDP in this economy:
A. is $400.
B. is greater than $400.
C. is less than $400.
D. cannot be determined from the information given.
D. cannot be determined from the information given.
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Which of the following types of income are subject to FICA taxes?
A. Interest earned on checking accounts B. Business profit from the self-employed C. Inheritance D. Profits earned from dividends
Neuroeconomics is a new field of economics motivated by the speculation that studying the human neural system can lead to:
A. a true mathematical model of utility theory. B. a unified theory of decision making. C. better laboratory experiments. D. tenure.
In an economy, the price level has doubled in about 70 years. The approximate annual percentage rate of increase in the price level over this period has been:
A. 1 percent. B. 2 percent. C. 3 percent. D. 4 percent.
An increase in government purchases will
A) increase public saving. B) increase the supply of loanable funds. C) reduce investment. D) reduce real GDP.