The information-aggregation problem faced by the top layers of government can make it hard for the high-level officials to:
A. Discern the prices of specific goods and services in the economy
B. Comprehensively assess the marginal costs and benefits of specific programs
C. Monitor the incomes of individual firms and households
D. Estimate the total amount of spending incurred by the government
B. Comprehensively assess the marginal costs and benefits of specific programs
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________ will lead to an increase in the gross domestic product of a country, all other variables remaining unchanged
A) An increase in expenditure incurred by the government B) A fall in the expenditure on consumption C) An increase in imports D) A fall in the expenditure on investment goods
Which of the following represents the correct formula for present value?
A) Present value = Payment T periods from now × (1 + interest rate)T B) Present value = Payment T periods from now - (1 + interest rate)T C) Present value = Payment T periods from now + (1 + interest rate)T D) Present value = Payment T periods from now / (1 + interest rate)T
What is a rent ceiling and what are its effects if it is set above the equilibrium rent?
What will be an ideal response?
The expenditure multiplier is smallest when the
A) LM curve is positively sloped. B) LM curve is horizontal. C) IS curve is vertical. D) LM curve is vertical.