Multiple Choice
If we compare the United States to France,we see that potential GDP per person in France is ________ than that in the United States because the French ________ is greater than that in the United States.
A) greater; tax wedge
B) less; structural deficit
C) less; tax wedge
D) less; MPC
Correct Answer:

Verified
Correct Answer:
Verified
Q13: An increase in taxes I. violates the
Q14: An income tax hike _ potential GDP
Q15: An economy has real GDP of $300
Q16: The crowding out effect refers to<br>A) the
Q17: A decrease in government expenditures on goods
Q19: The Fed's instruments include<br>A) open market operations.<br>B)
Q20: Which of the following is true?<br>I. The
Q21: An example of a fiscal policy designed
Q22: If the Fed makes an unexpected open
Q23: The Fed can change the federal funds