If the government raises income taxes, then the equilibrium amount of employment ________ and potential GDP ________
A) increases; decreases
B) does not change; does not change
C) increases; increases
D) decreases; increases
E) decreases; decreases
E
Economics
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If the short-run aggregate supply curve is shifting down repeatedly, it is rather likely that ________
A) output is declining repeatedly, relative to potential output B) the long-run aggregate supply curve is shifting to the left C) negative price shocks are recurring D) all of the above E) none of the above
Economics
The amount of new output produced per year for both consumption and additions to capital stock is measured by:
A. GDP B. Net investment C. NDP D. Net exports
Economics