Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.
Figure 26.7Refer to Figure 26.7. Which of the following statements characterizes an output level of $800 billion?
A. It can be achieved only if investment is independent of the interest rate.
B. It is attainable in the short run but it is associated with increases in the price level.
C. It is sustainable over the long run without inflation.
D. It is achievable only in the long run.
Answer: B
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The Romer and Romer 2010 paper in the American Economic Review identified the major motivations for most significant legislated tax changes to be the following, except:
A. Adjustments made to match changes in government spending B. Offsetting the monetary policy pursued by the Federal Reserve C. Addressing an inherited budget deficit D. Promoting long-run economic growth
The “universal service” argument often requires that some products be sold at a loss while other products be sold at profits higher than normal.
Answer the following statement true (T) or false (F)