Reference no: EM131171444
1) When the federal government runs a budget surplus, there may be a
"Crowding in" effect that contributes to the growth of private capital investment.
"Crowding in" effect that limits the growth of private capital investment.
"Crowding out" effect that contributes to the growth of private capital investment.
"Crowding out" effect that limits the growth of private capital investment.
2) Growth in GDP per capita will be achieved when
Labor demand decreases substantially while labor supply increases slightly.
GDP grows faster than the population.
Investment is equal to saving.
The government allows tax credits for companies who invest in research and development.
3) Growth in GDP per capita will be achieved when
Labor demand decreases substantially while labor supply increases slightly.
GDP grows faster than the population.
Investment is equal to saving.
The government allows tax credits for companies who invest in research and development.
4) One possible constraint to limitless growth is
Irreversible environmental damage.
A limited supply of arable land.
A capital stock that grows too quickly.
The fact that technological advance cannot go on forever.
5) A World View article titled " Japan Sees Quake Damage Bill of Up to $309 Billion, Almost Four Katrinas" implies that the most likely impact from power shortages from this destruction would be
An increase in GDP.
A leftward shift of aggregate supply.
A decrease in inflation.
A rightward movement down the Phillips curve.
6) If the absolute value of the tax elasticity of supply is 2.0, a tax increase of 10 percent will decrease output by
20 percent and increase tax revenues.
20 percent and decrease tax revenues.
5 percent and increase tax revenues.
5 percent and decrease tax revenues.
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