If the economy is in a recession, and the government increases its spending to bring the economy back to its long-run equilibrium, the long-run level of output will:
A. increase, with higher prices.
B. return, as will the original price level.
C. return, with lower prices.
D. return, with higher prices.
Answer: D
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According to the text, studies of 18th century colonial demographics indicate that, compared to Europe,
a. the birthrate in the colonies was lower. b. women in the colonies tended to marry later in life. c. the child mortality rate in the colonies was lower. d. average life expectancy for males in the colonies was lower. e. All of the above.
In the graph below, the value of the dollar in terms of yuan is:
A. appreciating because the dollar buys more yuan. B. appreciating because the dollar buys fewer yuan. C. depreciating because the dollar buys more yuan. D. depreciating because the dollar buys fewer yuan.
The U.S. federal government relies more heavily on ____ than any other government
a. excise taxes b. sales taxes c. customs duties d. income-based taxes
Under the gold standard, a nation’s domestic economic policy
a. was subordinate to balance-of-payments adjustments. b. controlled balance-of-payments adjustments. c. was unrelated to balance-of-payments adjustments. d. was controlled by the World Bank.