Answer the following questions true (T) or false (F)
1. If the federal budget has an actual budget surplus of $75 billion, but a cyclically adjusted budget surplus of $50 billion, then the economy must be above potential real GDP.
2. An increase in the tax wedge associated with a given economic activity will decrease the level of that activity.
3. The long-run growth rate of real GDP depends primarily on the growth in the number of hours worked and the growth rate of labor productivity.
1. TRUE
2. TRUE
3. TRUE
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Assume the firms in a perfectly competitive market are initially incurring economic losses. An increase in supply would cause existing firms' economic losses to decrease
Indicate whether the statement is true or false
On a bank's balance sheet, the value of its assets must equal: a. net worth only
b. liabilities only. c. owner's equity. d. the value of its liabilities plus net worth. e. its revenues minus costs.
Which of the following is not a coincident indicator?
a. Personal income. b. Industrial production. c. Manufacturing and trade sales. d. All of these.
The faster marginal utility declines the:
A. greater the elasticity of demand. B. larger the opportunity cost of the good. C. smaller the elasticity of demand. D. smaller the opportunity cost of the good.