Harvey, a U.S. taxpayer, purchased 10 shares of MVC stock for $100 per share; one year later he sold the 10 shares for $130 a share. Over the year, the price level increased from 140.0 to 147.0 . What is Harvey's before-tax real capital gain?
a. $1,300 - $1,000(1.05) and this is the gain he is to report on his income tax
b. $1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax
c. $1,300 - $1,000(1.07) and this is the gain he is to report on his income tax
d. $1,300 - $1,000(1.07) but he is to report a $300 gain on his income tax
b
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In the figure above, the natural unemployment rate is
A) 6 percent. B) 0 percent. C) 8 percent. D) 4 percent. E) 2 percent.
Since 1900, real GDP per capita in the United States has ________ in the short run and has ________ in the long run
A) fluctuated; displayed a strong upward trend B) remained fairly stagnant; grown considerably C) decreased more often than it has increased; increased more often than it has decreased D) grown at a stable and consistent rate; wildly fluctuated
If the federal government brings in $3 trillion in tax revenues and spends $4 trillion, the government has a budget:
A. surplus of $1 trillion. B. deficit of $1 trillion. C. surplus of $7 trillion. D. deficit of $0.75 trillion.
What are the components of private consumption expenditures?
a. Services, newly-constructed homes, durable goods, and nondurable goods b. Services, durable goods, and nondurable goods c. Services and nondurable goods d. Services, durable goods, and used goods e. Services and durable goods