In the basic Keynesian model, a tax cut:
A. reduces short-run equilibrium output.
B. reduces potential output.
C. increases short-run equilibrium output.
D. increases potential output.
Answer: C
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Suppose in the beginning of 2013, a country has a national debt of $8,000 billion. Its GDP in 2013 is $32,000 billion and its budget deficit of $1,600 billion. Compute its debt-GDP ratio at the end of the year.
A) about 5. 0% B) about 20,0% C) about 25.0% D) about 30%
In a competitive market economy, firms select the least-cost production technique because
What will be an ideal response?
Final goods and services refer to:
A. goods and services that are unsold and therefore added to inventories. B. goods and services whose value has been adjusted for changes in the price level. C. goods and services purchased by ultimate users, rather than for resale or further processing. D. the excess of U.S. exports over U.S. imports.
How do changes in interest rates affect exchange rates?
What will be an ideal response?