According to the simple quantity theory of money, an increase in the money supply will shift the __________ curve to the right and raise __________
A) AD; Real GDP
B) AS; the price level
C) AD; the price level
D) AS; Real GDP
E) none of the above
C
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In the Solow growth model, the law of motion of capital takes into account
A) the residential nature of houses. B) the mobility of capital. C) the depreciation of old capital. D) the cost of shipping and installing capital.
The GNP and National Income (NI) figures are not equal because
a. business profits are included in GNP but not in NI. b. capital consumption allowance and productive resource income from the rest of the world are included in GNP but not in NI. c. all taxes must be deducted from GNP to arrive at NI. d. None of these.
Small areas within which especially favorable investment and trading conditions are created by governments in order to attract export-oriented industries.
a. export-processing zones b. maquiladoras c. back offices d. export oriented ancillary services export zones
If a Balanced Budget Amendment to the U.S. Constitution were passed, during an economic slowdown, such an amendment would
A. automatically return the economy to a period of growth. B. cause those bad times to be even worse. C. bolster those bad times, so it wasn't as bad. D. have no impact on the economy.