The new classical model implies that a
a. budget surplus will effectively retard inflation emanating from excess demand.
b. budget deficit will increase the real interest rate.
c. substitution of debt for tax financing will leave aggregate demand and real output unchanged.
d. planned budget deficit will be a highly effective tool to combat a recession.
C
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Compensation paid to employees represented ________ of GDP for the United States in 2014
A) about 5 percent B) approximately 15 percent C) 35 percent D) more than 50 percent
What is marginal cost? How is it measured?
What will be an ideal response?
Refer to Figure 8.1. At the profit-maximizing level of output, AVC is
A) $22. B) $26. C) $30. D) $32. E) $40.
Short-run choices imply that at least one factor of production is fixed.
Answer the following statement true (T) or false (F)