When a government turns a deficit into a surplus we would expect
A) interest rates to rise.
B) interest rates to decrease.
C) the demand curve for loanable funds to shift rightward.
D) that more investment is crowded out.
B
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Strong growth in the U.S. during the 1990s may have been the result of
a. higher rates of government savings. b. reduced international trade barriers. c. strong labor productivity growth. d. stable inflation. e. All of the above
Suppose a competitive firm's total revenue is $1,000,000 where MR = MC, its explicit variable costs are $900,000, its fixed costs are $90,000 of which $60,000 are sunk in the short run
If its implicit opportunity costs are $50,000, the firm should A) produce because its economic profit is positive. B) produce because its economic profit is zero. C) produce even though its economic profit is negative. D) shut down.
With rational expectations, a correctly anticipated policy that would increase AD would lead to: a. higher inflation and lower unemployment in the short run
b. higher inflation and higher unemployment in the short run. c. higher inflation and no change in unemployment in the short run. d. lower inflation and lower unemployment in the short run.
Per capita GDP, a measure of worker productivity, reflects: a. the average quantity of goods and services available per person in a nation
b. the dollar value of a nation's output produced by an average worker in one hour. c. the economic growth rate of a nation adjusted for inflation. d. the ratio of inputs to the total output of an economy.