chapter 4 quiz

chapter 4 quiz - 1. Macroeconomic stability is said to...

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1. Macroeconomic stability is said to exist in an economy whenever: A) there is no inflation. B) total spending exceeds production capacity. C) output matches production capacity, labor is fully employed, and inflation is low and stable. D) the rates of output growth, unemployment, and inflation are all zero. 2. If negative externalities are not internalized, the: A) equilibrium output will exceed the most efficient output. B) most efficient output will exceed the equilibrium output. C) product must be a public good. D) distribution of income will necessarily become more equal. 3. The majority of personal consumption expenditures go to purchase: A) nondurable goods. B) durable goods. C) capital goods. D) services. 4. The essential difference between sales and excise taxes is that: A) sales taxes apply to a wide range of products, while excise taxes apply only to a select group of products. B) excise taxes apply to a wide range of products, while sales taxes apply only to a select list of
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chapter 4 quiz - 1. Macroeconomic stability is said to...

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