The term transfer payments refers to
A. Federal income taxes.
B. Money that is transferred between savings and checking accounts.
C. Additional profits transferred to monopolies as a result of their market power.
D. Payments to individuals that are not in exchange for current goods and services being produced.
Answer: D
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Taxes and transfer payments automatically reduce fluctuations in real GDP and thereby stabilize the economy without any need for decisions from Congress or the White House
Indicate whether the statement is true or false
Which of the following antebellum transportation innovations earned the greatest rate of return?
a. corporate-owned turnpikes b. the National Road c. the Erie Canal d. the Mainline Canal
If the price of a good increases by 10 percent, its quantity demanded drops by 50 percent. The price elasticity of demand is:
A. 1.0 B. 0.2 C. 5.0 D. 2.0
In macroeconomics, the long run is determined by:
A. how long it takes for prices of inputs to adjust through the whole economy. B. how long it takes for firms to vary all input quantities. C. the longest contract length of a business. D. how long it takes for output decisions to adjust to changes in economic conditions.