In the long run, what effect does a government's deficit spending have on equilibrium real Gross Domestic Product (GDP)?
A) Equilibrium real Gross Domestic Product (GDP) will increase beyond the full-employment level and there will also be an inflationary effect.
B) Higher government deficits will not raise equilibrium Gross Domestic Product (GDP) above the full-employment level.
C) Deficit spending will decrease the nation's equilibrium real Gross Domestic Product (GDP).
D) The government's deficit spending will increase equilibrium real Gross Domestic Product (GDP).
B
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An open economy is one in which exports and imports constitute a large share of GDP.
Answer the following statement true (T) or false (F)
The table below shows the hourly output per worker in two industries in Chile and Argentina. Use this table to answer the following questions.
a. ___________has an absolute advantage in the production of?hats, and _______________has an absolute advantage in the production of beer. b. ____________ has a comparative advantage in the production of? hats, and____________ has a comparative advantage in the production of beer. c. Suppose that Chile and Argentina currently do not trade with each other. Each has? 1,000 hours of labor to use for producing hats and? beer, and the countries are currently producing the amounts of each good shown in the table below. Using this? information, give a numerical example of how Chile and Argentina can both gain from complete specialization and trade. Assume that after trading? begins, one hat can be exchanged for one barrel of beer. Hats beer chile 9000 600 Argentina 600 800 Complete the table below. The table represents the amount of hats and beer after trading for each country hats beer chile ________ 600 Argentina 600 _______
Given the information in Figure 14.4, the monopsony wage rate is:
A) W1. B) W2. C) W3. D) W4. E) none of the above
In the upward-sloping portion of the individual labor-supply curve, the substitution effect is
a. greater than the income effect. b. less than the income effect. c. equal to the income effect. d. exactly offset by the income effect.