The underground economy
A) is measured by government officials through tax returns.
B) is difficult to describe but easy to measure.
C) includes production that uses illegal workers who are paid less than minimum wage.
D) includes mining production.
E) is estimated by the government and the estimate is part of official GDP.
C
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If actual real GDP is greater than the equilibrium level of real GDP (i.e., the aggregate expenditure function is below the 45-degree line), how is equilibrium restored?
One major problem with Social Security is that it is a “pay as you go” system.
Answer the following statement true (T) or false (F)
In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market. B. decrease growth because they slow the growth of capital. C. increase growth because they stop exploitation by foreigners. D. decrease growth because they cause inflation.
The biggest flaw in the logic of the labor argument is the failure to consider
A) the needs of developing countries. B) the impact of tariffs on inflation. C) the differences in national productivity levels. D) the impact on employment levels.