In a Mixed Economy, If the Government Share of GDP

question 76

Multiple Choice

In a mixed economy, if the government share of GDP is 20 percent, then the sum of the nongovernment shares will, in equilibrium, equal 80 percent because of

• A)government rules.
• B)adjustments in GDP.
• C)adjustments in the price level.
• D)adjustments in interest rates.
• E)adjustment in the unemployment rate.

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Definitions:

Services Rendered

Services rendered refer to the completion and provision of services agreed upon between a provider and a recipient.

Undisclosed Principal

A party in a contractual agreement whose identity is not revealed to the third party by the agent during the time of the agreement.

Partially Disclosed Principal

A principal whose identity is not known by a third party, although the third party is aware that the agent is making an agreement on behalf of a principal.

Vicariously Liable

A legal principle under which an individual or entity can be held legally responsible for the actions of another, typically in an employer-employee relationship.