The key idea of the aggregate expenditure model is that in any particular year, the level of GDP is determined mainly by
a. investment spending.
b. export spending.
c. government spending.
d. the level of aggregate expenditure.
d. the level of aggregate expenditure.
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The United States has developed a comparative advantage in film production due to the film industry being long-established in southern California, and lower costs result from the size of the industry in the area
This source of comparative advantage is referred to as A) external economies. B) best practices of unskilled labor. C) superior process technology. D) the abundance of natural resources.
P5
What will be an ideal response?
Judging from their statements, which of the following people is most likely to support supply-side economic policies?
a. Savana, who says government should increase corporate taxes to make the rich pay their fair share b. Leonardo, who says the government should spend more money to finance social welfare programs c. Brenda, who says government should ease its oversight of most types of businesses d. Octavio, who says the government should tax capital gains at regular income rates
Which of the following will cause an increase in economic growth?
A) a reduction in the unemployment rate B) a reduction in labor force participation C) an increase in human capital D) a reduction in the stock of physical capital