An inflationary output gap is defined to be when the current level of output is:
A. below full employment GDP.
B. above full employment GDP.
C. equivalent to full employment GDP.
D. high enough to cause an unexpected amount of inflation.
B. above full employment GDP.
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The price of Kenwood blender increased from ?150 to ?250. Following the increase in price, quantity demanded of the blender dropped from 500 to 400.
According to Ricardian equivalence, the key consequence of an increase in the budget deficit that arises from a tax cut is ________
A) a decrease in private investment B) an increase in inflation C) an increase in the public's holding of government bonds D) an increase in the supply of money
A significant portion of the increase in state tax revenues from 1950 to 1970 was because _____
a. of high inflation b. of increased economic growth due to the Korean conflict c. many states adopted new tax bases they had previously not taxed d. increased property tax rates
The concept of mean reversion is defined by
a. the tendency of profits to revert to zero b. the tendency of costs to revert to zero c. the tendency of economic profits to revert to zero d. the tendency of profits to revert to negative