Suppose the economy is initially operating at full employment. A reduction in the size of the budget deficit will cause which of the following in the long run?
A) a recessionary gap
B) a reduction in real GDP
C) an inflationary gap
D) none of the above
D
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Explain Thomas Hobbes' view that favors consumption as the best tax
What will be an ideal response?
The establishment of a government redistributive program such as price supports creates _____
a. higher consumer consumption b. above-normal annual profits c. a transitional gain d. independency among recipients
Assuming inflexible prices, if the demand for many goods and services falls across the entire economy and for ' an. extended period of time:
A)many firms will face with an inventory pile up and will be forced to cut production. B) many firms will face a constant reduction in their inventories and will be forced to hire more workers. C) many firms will face a constant reduction in their inventories. D) many firms will face with an inventory pile up and will be forced to hire more workers.
The dates of turning points are determined by a committee from the
A. BEA. B. FBI. C. NBER. D. BLS.