The sum of personal consumption expenditure, investment expenditure, government expenditure, and net export expenditure on the total amount of real output in the economy in a given period of time is called:
A) potential GDP.
B) aggregate expenditure.
C) real money balances.
D) none of the above.
B
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If everyone could participate in the logrolling process at low cost, _____
a. then logrolling would allocate resources efficiently b. the political benefits to politicians would fall c. political exchange would no longer be important d. decision-making costs would be astronomical
Refer to the above figure. If the relevant aggregate demand curve was AD2, the government could do all of the following to close the existing gap EXCEPT
A) increase government spending on roads. B) reduce marginal tax rates. C) reduce corporate taxes. D) reduce defense spending.
If a positive externality results from the consumption of higher education, then the marginal benefit students receive from education:
a. equals the marginal social benefit b. is less than the marginal social benefit. c. includes the marginal external benefit. d. exceeds the marginal social benefit.
What is meant by a final good or service as opposed to an intermediate good or service? Why are only final goods and services included in the calculation of GDP?