Economic rent serves
A) a descriptive function by making some wealthier than others, but serves no allocative function.
B) an allocative function by guiding available supplies to the most efficient use.
C) only to make the rich richer and the poor poorer.
D) no useful function in a modern economy.
B
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The source of the fiscal imbalance is _________.
Fill in the blank(s) with the appropriate word(s).
If policymakers do nothing in response to an inflationary gap, what will happen?
A. A rapid movement toward lower unemployment and higher inflation B. A rapid movement toward lower unemployment and lower inflation C. A slow movement toward higher unemployment and higher inflation D. A slow movement toward lower unemployment and lower inflation
Answer the following questions true (T) or false (F)
1. Prior to the 1930s, the majority of dollars spent by government was spent at the state and local levels. 2. Expansionary fiscal policy involves increasing government purchases or increasing taxes. 3. Contractionary fiscal policy is used to decrease aggregate demand in an attempt to fight rising inflation.
More than half the growth of real GDP in the United States is caused by:
A. the use of fewer inputs of labor. B. increases in the productivity of labor. C. a falling price level. D. the reallocation of labor from manufacturing to agriculture.