If New Zealand is operating at potential GDP, which of the following is true?
i. New Zealand only has frictional and structural unemployment.
ii. There is no inflation in New Zealand.
iii. New Zealand has positive net exports.
A) i, ii and iii
B) i only
C) i and ii
D) i and iii
E) ii only
B
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
People who believe in the ability-to-pay principle would most likely favor ______.
a. regressive taxes b. progressive taxes c. flat taxes d. excise taxes
Economics