Which of the expressions below best describes the aim of economic theory?
A. to learn what we can do to prevent people from having unrealistic wants
B. to understand why money motivates some people more than others
C. to predict the choices people will make
D. to predict how people think about money
Answer: C
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Refer to the above figure. How do you describe what is happening as the economy moves from point A to point C?
A) The economy has acquired new resources that are well suited for producing bread. B) Land that was once used to graze sheep is now being used to grow wheat. C) Resources are becoming unemployed. D) The technology for growing wheat has improved.
Assume Congress enacts a $500 billion increase in spending and a $500 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:
a. $500 billion decrease in aggregate demand. b. $500 billion increase in aggregate demand. c. $1,000 billion increase in aggregate demand. d. $1,000 billion decrease in aggregate demand.
How did the gold standard contribute to the spreading of the Great Depression of the 1930s?
What will be an ideal response?
Deregulation of the airline, trucking, telephone, and electric utility industries are examples of ________ policy.
A. monetary B. aggregation C. fiscal D. structural