When output is held constant, inflation does which of the following?
(a) Increases real GDP
(b) Increases real income
(c) Increases government spending
(d) Reduces the purchasing power of individuals
living on fixed incomes.
(d)
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Which of the following is a recommended strategy to increase productivity of the private sector?
a. A reduction in government subsidies to producers b. An increase in business taxes c. An increase in government investment in risky projects d. An increase in the money supply e. An increase in subsidy on goods and services
As Reba consumes four slices of pizza, her total utility rises from 0 to 18, to 24, to 28, and to 30, respectively. What is her marginal utility of the first slice of pizza?
a. 18 b. 24 c. 2 d. 7 e. 8
During fiscal year 2012, the most recent mentioned in the text, the federal government spent approximately
a. $1.7 billion b. $1.9 trillion c. $3.7 trillion d. $14.0 trillion
Frictional unemployment refers to