A decrease in taxes will have no effect on real GDP if
A) the tax decrease is offset by an increase in government spending.
B) people look at changes in taxes only in the present.
C) the Ricardian equivalence theorem holds.
D) there is no crowding out.
C
Economics
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The presence of navigable rivers and fertile soil is seen as a source of economic prosperity under the:
A) location hypothesis. B) geography hypothesis. C) culture hypothesis. D) institutions hypothesis.
Economics
Dell computers has increased production efficiency by
A) producing output with fewer inputs. B) expanding the amount of inputs used. C) outsourcing production. D) relying on decreasing returns to scale.
Economics