One of the most crucial ideas in macroeconomics is understanding that:
A. zero unemployment is the best way to achieve economic growth.
B. measuring total expenditures or total income both equal total production of an economy.
C. prolonging economic downturns can be prolonged by fiscal policy.
D. GNP is the most commonly used measurement of total production.
B. measuring total expenditures or total income both equal total production of an economy.
You might also like to view...
Which of the following are considered ad valorem taxes?
A) taxes assessed by charging a rate equal to a percentage of an item's price B) taxes assessed by charging a flat amount per unit purchased C) taxes based on the amount of debt that the government must repay D) taxes based on the amount of spending the government will undertake
The marginal social cost of air quality increases as air quality increases. If the dirtiest production process would create 700 tons of pollutants, then
a. eliminating the first 20 tons of pollution is cheaper than eliminating the last 20 tons b. eliminating the last 20 tons of pollution is cheaper than eliminating the first 20 tons c. more damage will be done by the first 20 tons of pollution than by the last 20 tons d. more damage will be done by the last 20 tons of pollution than by the first 20 tons e. the optimal level of air quality is to reduce pollution by 700 tons