Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. Which of the policies below could lead to these shifts?
i. An increase in government expenditure
ii. A tax cut
iii. A decrease in government expenditure
iv. A tax hike
A) iv only B) i and ii C) i and iv D) i only E) iii and iv
B
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When the Fed changes the quantity of money, there is an immediate effect on
A) the inflation rate but not the price level. B) the nominal interest rate. C) real GDP. D) the price level and the inflation rate. E) the price level but not the inflation rate.
Concentration ratios measure the percentage of industry sales for the top ________ firms.
Fill in the blank(s) with the appropriate word(s).
Answer the following statement true (T) or false (F)
1) Logrolling can either increase or diminish economic efficiency. 2) Even if a majority of the population wants a law and the law is passed, the outcome may still be economically inefficient. 3) The paradox of voting is that under majority voting rules the median voter decides the election outcome. 4) Majority voting assures that government will provide a public good if it yields total benefits in excess of total costs.
If GNP is $650 billion and depreciation is $70 billion, then net national product is
A. $560 billion. B. $580 billion. C. $610 billion. D. $720 billion.