Figure 10.2 A Macroeconomic Model with Government Spending and Taxes
What will be an ideal response?
The model shows two sets of leakages and injections into the circular flow: savings (leakage) and intended investment (injection), and net taxes (leakage) and government spending (injection). These may or may not balance out at a full employment level of output.
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The official name of the Social Security program is _____
a. Old Age, Survivors, Disability, and Health Insurance b. Old Age, Dependents, Survivors, and Disability Insurance c. Old Age, Dependents, Disability, and Health Insurance d. Seniors, Survivors, Dependents, and Health Insurance
Which of the following statements concerning utility as a measure for well being are false?
A) There is generally a positive relationship between income and utility. B) It is possible to determine which of two individuals is made happier by consuming a particular market basket. C) Utility is an abstract representation of an individual's degree of happiness. D) Cross country studies suggest that citizens in wealthier countries are happier than citizens in poorer countries.