A debt that rises faster than nominal GDP will impose the following opportunity costs in the future:
a. A permanently higher tax burden.
b. A period of inflation.
c. Reduced government outlays relative to GDP
d. Higher taxes relative to GDP.
e. All of the above.
E
You might also like to view...
The additional cost associated with hiring one additional unit of some factor input, such as labor, is referred to as
A) marginal physical product of labor. B) marginal revenue cost. C) marginal factor cost. D) marginal revenue product.
“People who make more money should pay higher taxes” is an example of
A. the benefits principle. B. horizontal equity. C. vertical efficiency. D. the ability-to-pay principle.
In a perfectly competitive market,
a. one large firm controls the market and sets price, while the other smaller firms behave as price takers. b. all firms produce and sell a homogeneous product. c. the output sold by a particular firm may be quite different from the output sold by the other firms in the market. d. it's difficult for new firms to enter the market due to barriers to entry. e. the products sold by each firm are only slightly different.
Economic decline (negative growth) is represented on a production possibilities frontier model by the production possibility frontier
A) shifting outward. B) shifting inward. C) becoming steeper. D) becoming flatter.