Using the data in the above table, if potential GDP for this economy is $25 billion, then in order to restore full employment, the federal funds rate can be
A) lowered so that government expenditure on goods and services increase.
B) raised so that consumption expenditure, investment, and net exports increase.
C) lowered so that consumption expenditure, investment, and net exports increase.
D) raised so that net exports increase.
E) lowered so that consumption expenditure and investment increase, though net exports decrease.
C
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If there is a technology improvement in a unionized labor market, this will
a. decrease the demand for labor, and the union will accept lower wages or fewer workers hired b. increase the demand for labor, and the union will accept lower wages or fewer workers hired c. decrease the demand for labor, and the union will demand higher wages or more workers hired d. increase the demand for labor, and the union will demand higher wages or more workers hired e. not affect the demand for labor, wages, or workers hired
The current surplus of the Social Security system is expected to become a deficit sometime around 2018 because the
a. payroll tax rate is scheduled to decline at that time. b. number of workers relative to the number of Social Security recipients will decline as the baby boom generation moves into the retirement phase of life. c. stock market is not expected to perform nearly as well during the next two decades as was the case during the 1980s and 1990s. d. growth rate of the U.S. economy is expected to slow during the next two decades.
Which of the following marketing pieces takes the concept of marginalism into account? Select one:
a. Computers, monitors and other technical equipment in local dumps are causing $1 million dollars in environmental damage. Vote yes to allocate $100,000 in cleanup spending. b. Help save the manatees. Contribute to the campaign to raise $10,000. c. Contribute $50 annually to the Heifer Foundation and give a chicken to a family living in poverty. This gift will help generate an additional $100 in household income through the sale of the eggs produced. d. Stephanie, a new college graduate, accepts the first job offer for $50,000 a year.
Every economy must ration goods in some way because of
a. overpopulation. b. poorly-performing markets. c. the income gap between rich and poor. d. scarcity.