Assume that the total deficit is $100 billion and the economy is above potential output
Now the level of economic activity falls back to its potential level output, leading to an decrease in tax revenues increase by $50 billion an increase in transfer payments fell by $10 billion. Then, what is the structural deficit? a. $100 billion
b. $110 billion
c. $150 billion
d. $160 billion
e. can't tell based on information given.
D
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A textile manufacturing unit faces low productivity due to shirking by workers. Which of the following is a possible solution to increase productivity and retain employees?
A) The provision of a lower real wage B) The provision of a lower nominal wage C) The provision of minimum wages D) The provision of efficiency wages
Which of the following is most important for the achievement of higher income levels and living standards?
a. an increase in total employment b. increases in government spending that create jobs c. production of additional goods and services that people value highly relative to the cost of their production d. restriction of imports that expand employment in the protected industries
Toby sells wheat in a perfectly competitive market. The demand curve for Toby's wheat is:
A. horizontal. B. vertical. C. downward sloping. D. U-shaped.
The breakfast cereals industry can be best modeled using the model of
A. monopoly. B. perfect competition. C. oligopoly. D. monopolistic competition.