In constructing models, economists:
A. make simplifying assumptions.
B. include all available information.
C. must use mathematical equations.
D. attempt to duplicate the real world.
Answer: A
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In the short run, an unexpected increase in the inflation rate leads to.
A) A higher unemployment rate. B) A decrease in aggregate demand. C) A lower unemployment rate. D) Workers thinking the money wage rate has fallen.
If a nation is currently operating at a point inside its production possibilities curve, it
A. can increase the output of one good without decreasing the output of the other good. B. has fully employed resources. C. has no inefficiently employed resources. D. is operating at full potential.
Figure 16-1
In Figure 16-1, there are four levels of income. G is government expenditures and TT is taxes less transfers. At which level of income does the official budget produce a surplus?
a.
Y4
b.
Y3
c.
Y2
d.
Y1
About two-thirds of the reduction in tariffs in the past 20 years comes from:
A. specific funding directed at encouraging trade through subsidies by the World Bank. B. the work of the WTO, World Trade Organization. C. reforms by national governments changing their own policies or making agreements with each other. D. None of these statements is true.