would you please give an explanation to each question answer

28 29 30 Which of the following is MOST likely to promote economic growth? (A) A decrease in business tax credits for Investment spending (B) A decrease in federal student education grants (C) An increase in investment in and machinery (D) A decrease in the labor force participation (E) An increase in the real interest rate Which of the following is NOT a criticism of gross domestic product (GDP) as a measure of a nation's well-being? (A) GDP measures only the value of final goods and services and not intermediate goods and services. (B) GDP does not aecount for the negative impacts of economie growth, such as pollution. (C) GDP does not aetount for nan-market activities accomplished by individual economic actors for themselves. (D) GDP does not account for inequitable distribution of income among the populace, resulting in wide discrepancies in living standards. (E) Economie activities for which people are paid underthe table", or barter transactions, are not accounted for by GDP statistics. The spending multiplier is the result of (A) tax revenues increase as consumer and business incomes Increase (B) foreign purchasers inerexsing expenditures as the currency appreciates. (C) government spending crowding out consumption and investment spending. (D) domestic investment expenditures rising as interest rates rise. (E) consumer expenditures rising as incomes 31 32 33 34 In the midst of a S300 billion recessionary gap, the federal government decides to use fiscal policy to bring the economy back to long run equilibrium. If society's marginal propensity to consume (MPC) is 0.80, which ofthe following could the do to reach full employment assuming no crowding out or leakages? (A) Increase taxes by S60 billion. (B) Decrease taxes by S300 billiom (C) Increase expenditures $60 billion (D) Increase govemment expenditures by S 150 billion (E) Increase govemment expenditures by $300 billion Which of the following is an example of cyclical unemployment? (A) Sue, who is unemployed, has stopped looking for a job (B) Juan has taken voluntary retirement from his job at an aerospace company. (C) Zelda lost a job with the recent downturn m the economy. (D) Jack lacks the skills to fill any of the available jobs (E) Robert quits his job to search for a better Which of the following best describes the concept of inflation? (A) Appreciation of one currency relative to another currency (B) An acceleration in Interest rates (C) A steady rise in the general level of prices (D) Growth rate of real gross domestic product (E) A rise in the unemployment rate In the ASIAD model, which of the following shifts would be the likely result of an increase in personal income taxes? (A) Aggregate demand shifts to the right (B) Aggregate demand shifts to the left (C) Aggregate supply shifts to the right (D) Aggregate supply shifts to the left (E) Aggregate demand and aggregate supply both shift to the right