In the classical model, taxes and spending are treated as two separate variables
a. True
b. False
A
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A major difference between the costs of unemployment and the costs of inflation is that
A) the former is structural the latter frictional. B) the government pays the latter, the population pays the former. C) unemployment costs are concentrated among a few people, while inflation costs are distributed more broadly across the entire population. D) unemployment costs are distributed among people, while inflation costs are distributed more narrowly across the entire population.
The current account is
A) the reserve assets created by the International Monetary Fund for countries to use in settling international payment obligations. B) the price of one nation's currency in term of the currency of another country. C) a category of the balance of payments transactions that measures flows of real and financial assets. D) a category of the balance of payments transactions that measures the exchange of merchandise, the exchange of services, and unilateral transfers.
The term "stagflation" is used to define an economic situation where there are adverse supply shocks which cause a fall in output but with increasing price level.
Answer the following statement true (T) or false (F)
Refer to Scenario 7.4 below to answer the question(s) that follow.SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.Refer to Scenario 7.4. Your economic profit last year was
A. -$20,000. B. $40,000. C. $70,000. D. $90,000.