The growth of GDP may understate changes in the economy's economic well-being over time if the:
A. distribution of income becomes increasingly unequal.
B. quality of products and services improves.
C. environment deteriorates because of pollution.
D. amount of leisure decreases.
B. quality of products and services improves.
Economics
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The amount by which aggregate spending at full employment exceeds full employment output is known as the:
A. Inflationary gap. B. Recessionary gap. C. Deflationary gap. D. Multiplier effect. E. Crowding out.
Economics
If the marginal tax rate is less than the average tax rate as taxable income increases, the tax structure is
A) proportional. B) progressive. C) unfair. D) regressive.
Economics