When People Survey Economists' Beliefs, They Find

question 143

Multiple Choice

When people survey economists' beliefs, they find

• A)a surprising amount of agreement.
• B)that economists act as if they are not human.
• C)that economists lack moral beliefs.
• D)that, for every economist, they get two different answers.
• E)more disagreement than expected.

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Definitions:

Potential Output

The maximum amount of goods and services an economy can produce when it uses its resources fully and efficiently, without causing inflation.

Net Taxes

The total taxes paid to the government minus transfer payments and subsidies received from the government.

Aggregate Demand

The total quantity of goods and services demanded across all levels of an economy at a given price level and in a given time period.

Potential Output

The peak level of real GDP that can be maintained in the long run without causing inflation to rise.