Which of the following is correct if real GDP is $20 trillion and spending is $20 trillion?
What will be an ideal response?
Spending and GDP are in equilibrium.
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In a one-period economic model, the government budget constraint requires that government spending
A) = taxes + transfers. B) = taxes + borrowing. C) > 0. D) = taxes.
The invention of the Bessemer converter in 1856:
a. increased the cost of continuous and coordinated operations of a steel industry. b. motivated downstream integration of the steel industry into coal mining. c. increased the efficient scale of steel production. d. increased volumetric interdependence between different stages of steel production.
In what type of analysis will an increase in the tax rate always lead to an increase in tax revenues?
A) ad valorem taxation B) excise taxation C) dynamic tax analysis D) static tax analysis
Suppose an industry consists of 20 firms. Each firm's share of total sales in the industry is 5 percent. If two of the firms merge, then the four-firm concentration ratio in the industry will
A) remain unchanged. B) decrease as there are fewer firms in the industry. C) increase. D) depend on the market condition faced by the industry.