Suppose in the beginning of 2013, a country has a national debt of $5,000 billion. Its GDP in 2013 is $20,000 billion and its budget surplus of $130 billion. Compute its debt-GDP ratio at the end of the year.
A) 2.6%
B) 25.0%
C) 24.4%
D) 6.5%
Answer: C) 24.4%
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Which of the following is true of equilibrium?
A) Equilibrium refers to a situation where an economic agent can be made better off without making anyone else worse off. B) Equilibrium refers to a situation where the government allocates resources among economic agents. C) Equilibrium refers to a situation where all economic agents are making sub-optimal choices and have an incentive to change behavior. D) Equilibrium refers to a situation where all economic agents simultaneously optimize after considering each other's actions.
If consumers but not producers expect that the price of soda will rise in November, the
A) supply of soda in October will increase. B) demand for soda in October will decrease. C) demand for soda in October will increase. D) supply of soda in October will decrease.
After a tariff is imposed, consumers must pay a price equal to the
A) world market price. B) domestic equilibrium price when there is no trade. C) world market price plus the tariff. D) world market price less the tariff. E) domestic equilibrium price when there is no trade plus the tariff.
Which of the following models view changes in real supply-side factors as determinants of short-run fluctuations in output and employment?
a. New classical models b. Political business cycle models c. Keynesian models d. Real business cycle models e. none of the above